Global Markets*: China’s comments over long-standing trade disputed pushed the stocks in the United States higher, with the Dow Jones Industrial Average Index extended by 351.25 points or 1.35% to 26,387.35, the S&P 500 index leapt up by 41.86 points or 1.45% to 2,929.80 and the technology benchmark index Nasdaq Composite index nudged up by 133.83 points or 1.70% to 7,990.71 respectively.
Global News*: Amid a strong labour market, with jobless claims at 215,000, the US economy reported the strongest growth in consumer spending in 4-1/2 years, even as the economy slowed in the second quarter to post revised GDP growth rate of 2 per cent, from the 2.1 per cent rate estimated last month. The Chinese commerce ministry said on Thursday that if the US creates favourable conditions to avoid an escalation in the trade war, the two countries can continue with the next round of face-to-face trade talks, which are scheduled in September. A positive comment from China eased the fears of investors, helping technology shares to rise on Thursday and extending the rise of Treasury yields.
European Markets*: Equity benchmark index of the UK the FTSE 100 index nudged up by 72.41 points or 1.02% to 7,187.12, the FTSE 250 index surged by 76.19 points or 40% to 19,279.18, and the FTSE All-Share leapt up by 34.61 points or 0.89% to 3,940.9 respectively. Another broader European benchmark index STOXX surged by 2.90 points or 0.78% to 375.78 respectively.
European News*: After ordering the suspension of parliament for almost a month, the administration of Prime Minister Boris Johnson seemed to be in open fight with the opponents of no-deal Brexit and challenged them to change the law or collapse the government to stop the exit from the European Union, as the constitutional crisis in the country deepened. Due to deepening pessimism among consumers, retailers and services companies, Economic Sentiment Indicator (ESI) for Britain, a gauge of economic health, fell to an almost seven-year low in August to 92.5 from 94.3 in July. The Society of Motor Manufacturers and Traders (SMMT) reported that last month British new car production fell by an annual 10.6 per cent, hit by a 14.6 per cent drop in exports, representing the 14th consecutive month of declines, despite increased production for the domestic market. A poll found that investors have a subdued outlook for UK equities as investors continue to avoid British assets and forecasted that imminent exit from the EU would weigh on the FTSE 100 index well into next year. Following the latest move by the PM, there is a 50 per cent chance that the country will leave without a deal, Deutsche Bank said on Wednesday.
London Stock Exchange (LSE)
Top Performers*: HUNTING PLC (HTG), WILLIAM HILL PLC (WMH) and CONNECT GROUP PLC (CNCT) are the top gainers of the day and up by 6.61%, 5.66% and 5.46% respectively.
Worst Performers*: AMIGO HOLDINGS PLC (AMGO), MICRO FOCUS INTERNATIONAL PLC (MCRO) and NOSTRUM OIL & GAS PLC (NOG) are the top three laggards of the day and down by 51.30%, 29.86% and 8.68% respectively.
FTSE 100 Index
FTSE 100 Index Chart: 5-days Price Performance (as on August-29-2019), before the market closed. (Source: Thomson Reuters)
Performers*: SMITHS GROUP PLC (SMIN), GLENCORE PLC (GLEN) and ASHTEAD GROUP PLC (AHT) are the top three gainers in today’s session and up by 4.59%, 3.49% and 3.33% respectively.
Laggards*: MICRO FOCUS INTERNATIONAL PLC (MCRO), NMC HEALTH PLC (NMC), and ST. JAMES’S PLACE PLC (STJ) are top laggards at the FTSE 100 index and down by 30.10%, 1.90% and 1.63% respectively.
Volume Leaders*: (LLOY) LLOYDS BANKING GROUP PLC, (VOD) VODAFONE GROUP PLC, and (GLEN) GLENCORE PLC.
Top Performing Sectors*: Telecommunications Services (+1.73%), Industrials (+1.45%), and Basic Materials (+1.44%).
Worst Performing Sector*: Technology (-4.26%).
Foreign Exchange and Fixed Income
Currency Rates*: GBP/USD and EUR/GBP were quoting at 1.2182 and 0.9075, respectively.
10-Year Bond Yields*: US 10 year Treasury and UK 10 year Government Bond yields were hovering at 1.523% and 0.438% respectively.
* At the time of writing