Trump Administration Takes a U-Turn Over Proposed Tariff

Global Markets: Stocks in the United States pared losses of Monday in today’s session, with the Dow Jones Industrial Average Index added 385.58 points or 1.49% and quoting at 26,283.29, the S&P 500 index surged by 44.01 points or 1.53% to 2,926.70 and the technology benchmark index Nasdaq Composite nudged by 140.19 points or 1.78% and quoting at 8,003.60 respectively, at the time of writing.

Global News: In a sudden change from a hard-line stance on Chinese trade by the US President Donald Trump, his administration on Tuesday announced its decision to delay imposing a 10 per cent import tariff on video game consoles, cell phones, laptops and some other products until 15 December, providing relief to retailers. The scheduled tariff was due to start next month, and its delay would help to cool the matters. The Labour Department reported that consumer prices increased broadly in July, as Consumer price index rose by 0.3 per cent in July and Core CPI gained 0.3 per cent. As there were signs that trade tensions between the two largest economies in the world had eased for now, the risk appetite of the investors improved, helping 30-year yields to rise from 3-year low and 10-year note yields hit session highs.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 24.18 points or 0.34% higher at 7,250.90, the FTSE 250 index snapped 95.18 points or 0.50% higher at 19,008.18, and the FTSE All-Share Index ended 13.63 points or 0.34% higher at 3,961.16 respectively. Another European equity benchmark index STOXX 600 ended at 372.40, up by 1.99 points or 0.54 per cent.

European News: The Office for National Statistics reported that Britain created a net 115,000 jobs in the second quarter, beating forecasts by the market. Average weekly earnings increased by an annual rate of 3.7 per cent in the three months to June, rising to an 11-year high, indicating that the labour market remained unexpectedly strong despite signs of a slowdown in the economy. A Scottish court will on 6 September hear arguments against an attempt by British Prime Minister Boris Johnson to prorogue parliament before the country leaves the European Union, as opposition MPs seek to block a non-negotiated EU divorce. Despite positive data from the labour market, Sterling held near a 2-1/2 year low amid concerns over no-deal Brexit.

London Stock Exchange (LSE)

Top Performers Stocks: PLUS (PLUS500 LTD), SXX (SIRIUS MINERALS PLC), and KIE (KIER GROUP PLC) rose by 20.76 per cent, 17 per cent and 15.95 per cent respectively.

Top Laggards Stocks: TCG (THOMAS COOK GROUP PLC), ARW (ARROW GLOBAL GROUP PLC), and ZTF (ZOTEFOAMS PLC) reduced by 14.20 per cent, 8.96 per cent and 5.28 per cent respectively.

FTSE 100 Index

FTSE 100 Index Chart: 5-days Price Performance (as on August-13-2019), after the market closed. (Source: Thomson Reuters)

Top Risers Stocks: AAL (ANGLO AMERICAN PLC), ANTO (ANTOFAGASTA PLC), and GLEN (GLENCORE PLC) rose by 2.56%, 2.42%, and 2.30% respectively.

Top Fallers Stocks: AUTO (AUTO TRADER GROUP PLC), HL. (HARGREAVES LANSDOWN PLC), and NXT (NEXT PLC) reduced by 2.60 per cent, 2.05 per cent and 1.98 per cent respectively.

Top Three Active Volume Stocks: LLOYDS BANKING GROUP PLC (LLOY), HSBC HLDGS PLC (HSBA), and BP PLC (BP).

Top Performers Sectors: Basic Materials (+1.42%), Energy (+1.20%), and Telecommunications Services (+0.63%).

Top Fallers Sectors: Technology (-0.58%), Consumer Non-Cyclicals (-0.52%), and Utilities (-0.41%).

Foreign Exchange and Fixed Income

FX Rates (at the time of writing): GBP/USD and EUR/GBP were trading at 1.2056 and 0.9267 respectively.

10-Year Bond Yields (at the time of writing): US 10Y Treasury and UK 10Y Bond yields were exchanging at 1.683% and 0.489% respectively.

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