Earlier, the global markets were being weighed by the several macro-economic factors and by the geopolitical tensions. Recently, the market participants are largely focusing on the earnings reports of the US companies. There are expectations that, for some time, the markets would be very much sensitive to the earnings results of the companies. Moreover, it seems like the trade battle between the US and China might settle, while market players are watching China’s economy slow-down. The market players are now positive, and this might support their sentiments as well as the broader equity markets. The permanent settlement of the trade battle would significantly support the global investment markets, and the investors might be relieved.
On January 18, 2019, FTSE 100 Index was initially moving on the negative note, but the index closed at 6,968.33, up 133.41 points (i.e., 1.95%). On January 17, 2019, FTSE 100 closed after witnessing a marginal fall. It can be assumed that the European markets are uncertain largely because of the Brexit deal. With not even 70 days left for Brexit, UK has yet not finalized any trade deals that will replace existing EU’s 40 agreements with most of the developed economies and will not be able to set trade deals when Brexit occurs on March 29, as per Whitehall memorandum. Last week, Trade Remedies Authorities’ (TRA) Chief Executive Designate, Claire Bassett informed the International Trade Committee on the progress that will ensure that TRA will be ready for Brexit. Department of International Trade has told that they have already recruited 70% of the future TRA’s staff, with more than 90 already in board, and one-third of those have even completed their initial training and equipped with the required accounting, economic skills and legal, as the prerequisite to conduct trade remedies investigations. The new website of TRA will be launch shortly, which will enable people to submit evidence and application as a part of the review and investigation process.
Societe Generale had also shown tensions relating to the fourth quarter performance. It stated the unfavourable market environment with respect to the global markets might impact its Global Market scenario and Investor Services business in terms of the revenues for the quarter as well as for the year. Societe Generale stated that there are expectations that its revenues for the mentioned business would witness a fall of around 20% in Q4 2018 on the YoY basis. However, Societe Generale might encounter a fall of around 10% in the revenues in FY 2018 on the YoY basis. On the US front, Donald Trump also scheduled to meet the cabinet officials to rejuvenate infrastructure push.
Coming to London Stock Exchange, equities like Ashtead Group PLC (AHT.L), GVC Holdings PLC (GVC.L), and Melrose Industries PLC (MRON.L) have been the top gainers on FTSE 100 index and were up by 4.5%, 4.00%, and 4.43% respectively, while the laggards on FTSE 100 index included Ocado Group PLC (OCDO.L), and Fresnillo PLC (FRES.L) (down by 1.94% and 1.5%, respectively).
Most of the sectors were trading in green on FTSE 100 index, and Energy, Financials and Industrials were seen to be up over 2%.
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