FTSE 100 extend gains tailing Asian Markets

Summary 

• FTSE 100 trades in green boosted by strong cooperate earnings.
• PMI data indicates the Service growth rate has slowed down in the UK because of staff shortage and supply issues.

FTSE 100 has extended its last session gains and continues to trade in the green, helped by the gain in the financial sector and strong cooperate earnings. The top gainer amongst blue-chip index was housebuilding company Taylor Wimpey Plc, which was up by over 3% after it reported 191% rise in half-yearly revenue, while financial stocks Legal & General Group Plc was up by 2.5%, Prudential Plc was also up by 2.14%, and Scottish Investment Plc gained 2.2%.

Growth in the UK’s service sector slowed in July as per the service PMI data published by the IHS Markit. Service PMI in July stood at 59.6, down from 62.4 reported in June month, which shows the UK economy is recovering, supported by uninterrupted business activity. However, the growth rate slowed last month due to supply issues and staff shortage as thousands of workers have to self-isolate themselves after receiving notification from the NHS coronavirus tracking app when they come in close contact with someone who tested coronavirus positive.

European Markets

Major European market indexes were trading in the positive zone. German blue-chip DAX index is up by 0.71% at 15,665, while the CAC 40, benchmark index of France was at 6,756, up by 0.50%. European markets are mostly trading higher, tracking the Asian market and positive global sentiments.

Currency Markets

The pound continues to trade higher at 1.3929, up by 0.10% against the US dollar; the dollar trades lower against major European currency ahead of the US employment data, which will be declared on Thursday and could guide upcoming monetary policy meetings of the US Federal Reserve. The EUR/ GBP currency pair traded at 0.8508, up by 0.16%.

Commodities

Today, Brent crude oil trades in the range-bound at USD 72.44, up by 0.44%, while the WTI crude oil future contract traded at USD 70.34, down by 0.28%. The crude oil future is trading range-bound this week. Investors anticipate lower fuel demand in the United States and China, the world’s biggest oil consumers, due to the increasing spread of coronavirus’s delta variant.

Gold August futures contract trades at USD 1817 per ounce, up by 0.17%.

Asian Markets

Major Asia Pacific indexes closed in the positive zone, with Australia’s ASX200 snapping the session at 7,503, up by 0.38%. India’s Nifty 50 closed at record levels of 16,258, up by 0.79%, while Hong Kong’s Hang Seng index closed, up by 0.88% at 26,426. Shanghai Composite of China closed in green, up by 0.85% at 3,477. However, Nikkei 225 of Japan closed in the red, down by 0.21% at 27,584.