Hopes Of Stimulus Lifts Equity Market, FTSE 100 Index Up 0.71%

Global Markets: Benchmark indices in the United States climbed up at the end of steep volatile week, the Dow Jones Industrial Average Index leapt up by 269.28 points or 1.05% to 25,848.67, the S&P 500 index nudged by 38.55 points or 1.35% to 2,886.15 and the technology benchmark index Nasdaq Composite gained 124.23 points or 1.60% and quoting at 7,890.89 respectively, at the time of writing.

Global News: Amid a steep fall in the construction activity of multi-family housing units, US housing starts dropped by 4.0% in July to a seasonally adjusted annual rate of 1.191 million units, declining for a third straight month. Record-low mortgage rates have done little to help the housing market, though hope for the struggling market was offered by a jump in permits. As hopes that the German government may be open to running a deficit to boost flagging growth rose, Treasury yields rose on Friday as demand by worried investors for safe-haven debt declined. Also, hopes of more stimulus from central banks helped the equity indices to rise on Friday.

European Markets: The broader equity benchmark index of the UK, the FTSE 100 index increased by 50.14 points or 0.71% against the previous closing level to 7,117.15, the FTSE 250 index surged by 181.20 points or 0.97% to 18,821.85 and the FTSE All-Share moved up by 28.11 points or 0.73% and ended the session at 3,893.66 respectively. Another European benchmark index STOXX ended 4.54 points or 1.24% higher to 369.63 respectively.

European News: The leader of the pro-EU Liberal Democrats said on Friday that to lead an emergency government to halt a no-deal Brexit, veteran British lawmakers from the opposition Labour and ruling Conservative would be willing to lead an emergency government if the government falls after confidence motion. Amid a hectic week on global financial markets, the start of trading for the FTSE 100 and FTSE 250 index was delayed for almost two hours due to a technical glitch. Increased hopes of global stimulus and a bid to thwart no-deal Brexit helped long-dated British government bond yields and sterling to rise on Friday.

London Stock Exchange (LSE)

Top Performers Stocks: TCG (THOMAS COOK GROUP PLC), ALFA (ALFA FINANCIAL SOFTWARE HOLDINGS PL) and BAKK (BAKKAVOR GROUP PLC) are top performers of the day and up by 28.95%, 12.09% and 9.97% respectively.

Top Laggards Stocks: INTU (INTU PROPERTIES PLC), RSE (RIVERSTONE ENERGY LIMITED) and NOG (NOSTRUM OIL & GAS PLC) are the top three laggards of the day and down by 5.92%, 5.43% and 5.31% respectively.

FTSE 100 Index

 FTSE 100 Index Chart: 5-days Price Performance (as on August-16-2019), after the market closed. (Source: Thomson Reuters)

Top Three Risers Stocks: ITV (ITV PLC), SBRY (SAINSBURY(J) PLC) and STJ (ST. JAMES’S PLACE PLC) are the top three gainers in today’s session and up by 3.19%, 3.05% and 2.78% respectively.

Top Three Fallers Stocks: FRES (FRESNILLO PLC), PRU (PRUDENTIAL PLC), and BHP (BHP GROUP PLC) are top laggards at the FTSE 100 index and down by 1.13%, 1.01% and 0.98% respectively.


Top Performers Sectors: Technology (+1.50%), Financials (+1.34%) and Telecommunications Services (+1.19%).

Top Faller Sector: Basic Materials (-0.30%).

Foreign Exchange and Fixed Income

FX Rates (at the time of writing): GBP/USD and EUR/GBP were trading at 1.2147 and 0.9136 respectively.

10-Year Bond Yields (at the time of writing): US 10Y Treasury and UK 10Y Bond yields were exchanging at 1.549% and 0.460% respectively.