Escalating Trade War Nudges Stocks And Yields Down

  • May 29, 2019 BST
  • Team Kalkine
Escalating Trade War Nudges Stocks And Yields Down

Global Markets: Equity indices at the Wallstreet were hovering in red zone, with Dow Jones Industrial Average Index was at 24,973.99 and fall off by 373.78 points or 1.47% in the today’s session, the S&P 500 index was quoting 35.79 points or 1.28% lower at 2,766.48 and the technology benchmark Index Nasdaq Composite declined by 101.28 points or 1.33% and trading at 7,505.45, at the time of writing.

Global News: After China signalled a further escalation in its trade war with the United States, with warnings by Chinese newspapers that Beijing is ready to use rare earth metals to strike back, benchmark US Treasury yields dropped to 20-month lows. Investors are worried that the dispute could be protracted and will drag down international economic growth. Moreover, a lawsuit was filed against the US by Huawei Technologies over sanctions.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 83.65 points or 1.15% lower at 7,185.30, the FTSE 250 index snapped 258.82 points or 1.35% lower at 18,946.11, and the FTSE All-Share Index ended 46.21 points or 1.16% lower at 3,934.17 respectively. European benchmark index STOXX 600 ended 5.39 points or 1.43% lower at 370.51 respectively.

European News: A court ordered Boris Johnson, the favourite to be Britain's next PM, to appear to face allegations as he lied about Brexit.  Amid renewed concerns about global growth due to US-China trade war, British 10-year government bond yield declined to its lowest level since October 2016. The pound held near four-month lows on Wednesday and suggesting that investors are preparing for greater currency swings in the coming months.

London Stock Exchange (LSE)

Top Performers Stocks: PETRA DIAMONDS LIMITED (PDL), DP EURASIA N.V. (DPEU), and GALLIFORD TRY PLC (GFRD) surged by 13.10 per cent, 10.58 per cent and 6.36 per cent respectively.

Top Laggards Stocks: JUST GROUP PLC (JUST), LOW & BONAR PLC (LWB), and MARKS AND SPENCER GROUP PLC (MKS) decreased by 8.16 per cent, 7.76 per cent and 7.39 per cent respectively.

FTSE 100 Index

FTSE100 Index: 5-days Price Chart as on May 29, 2019. (Source: Thomson Reuters)

Top Risers Stocks: VODAFONE GROUP PLC (VOD), SEVERN TRENT PLC (SVT) and FRESNILLO PLC (FRES) rose by 1.71 per cent, 0.64 per cent and 0.54 per cent respectively.

Top Fallers Stocks: MARKS AND SPENCER GROUP PLC (MKS), NMC HEALTH PLC (NMC) and TESCO PLC (TSCO) reduced by 7.39 per cent, 7.06 per cent and 5.21 per cent respectively.

Top Active Volume Leaders: LLOYDS BANKING GROUP PLC, VODAFONE GROUP PLC, and GLENCORE PLC.

Top Risers Sectors: Telecommunications Services (+0.98%) and Utilities (+0.36%).

Top Fallers Sectors: Technology (-2.36%), Basic Materials (-1.99%), and Consumer Cyclicals (-1.70%).

Foreign Exchange and Fixed Income

FX Rates*: GBP/USD and EUR/GBP were exchanging at 1.2626 and 0.8820 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were trading at 2.236% and 0.900% respectively.

 

*At the time of writing

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