Global Weakness Forces FTSE 100 Lower

Global Markets: Shares in the United States were nosediving on the first trading session of the second week of the August 2019, with the broader index S&P 500 fell off more than 41.85 points or approximately 1.43% in today’s session and quoting at 2,876.80, the Dow Jones Industrial Average Index slumped substantially by 440.33 points or approximately 1.68% against the previous closing price level and citing at 25,847.11 and the Nasdaq Composite Index – a global technology benchmark index plunged more than 116.62 points or 1.47% and trading at 7,842.52 respectively, at the time of writing.

Global News: Former and current US and G7 officials said that the decision by President Donald Trump to label China currency manipulator is unlikely to have severe consequences on the country. Demand for safe-haven assets was boosted by the defeat of President Mauricio Macri during primary elections in Argentina and fears that a prolonged US-China trade dispute would push the global economy into recession, leading to a fall in equities and Treasury yields.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 27.13 points or 0.37% lower at 7,226.72, the FTSE 250 index snapped 179.15 points or 0.94% lower at 18,913.00, and the FTSE All-Share Index ended 18.01 points or 0.45% lower at 3,947.53 respectively. Another European equity benchmark index STOXX 600 ended at 370.41, down by 1.15 points or 0.31 per cent.

European News: After food and drink lobby, British pharmaceutical companies warned that in the event of a no-deal Brexit, shortages of some medicines could worsen in Europe as UK exports large amounts of drugs to other EU states. As Thomas Cook plunged after updating on its recapitalisation plans and Asia-focused companies declined over worries about Hong Kong protests, FTSE 100 shed all of its early gains on Monday to end the day lower and was on course for its second monthly fall this year. Euro weakness due to political tensions in Italy helped sterling to rise against the euro but worries over a no-deal Brexit kept the currency near multi-year lows.

London Stock Exchange (LSE)

Top Performers Stocks: TLW (TULLOW OIL PLC), KIE (KIER GROUP PLC), and KMR (KENMARE RESOURCES PLC) rose by 19.77 per cent, 14.74 per cent and 4.35 per cent respectively.

Top Laggards Stocks: TCG (THOMAS COOK GROUP PLC), SXX (SIRIUS MINERALS PLC), and IPF (INTERNATIONAL PERSONAL FINANCE PLC) reduced by 18.26 per cent, 12.31 per cent and 9.54 per cent respectively.

FTSE 100 Index

FTSE 100 Index Chart: 5-days Price Performance (as on August-12-2019), after the market closed. (Source: Thomson Reuters)

Top Risers Stocks: RB. (RECKITT BENCKISER GROUP PLC), SSE (SSE PLC), and JE. (JUST EAT PLC) rose by 1.59%, 1.37%, and 1.32% respectively.

Top Fallers Stocks: NMC (NMC HEALTH PLC), SDR (SCHRODERS PLC), and RR. (ROLLS-ROYCE HOLDINGS PLC) reduced by 5.59 per cent, 3.63 per cent and 3.49 per cent respectively.

Top Three Active Volume Stocks: LLOYDS BANKING GROUP PLC (LLOY), BARCLAYS PLC (BARC), and BP PLC (BP).

Top Performers Sectors: Consumer Non-Cyclicals (+0.56%) and Energy (+0.13%).

Top Fallers Sectors: Financials (-1.51%), Industrials (-0.63%), and Telecommunications Services (-0.49%).

Foreign Exchange and Fixed Income

FX Rates (at the time of writing): GBP/USD and EUR/GBP were trading at 1.2079 and 0.9289 respectively.

10-Year Bond Yields (at the time of writing): US 10Y Treasury and UK 10Y Bond yields were exchanging at 1.639% and 0.483% respectively.