FTSE 100 rallies on banking stocks rally after July rebound

UK Market News:  The UK stock market extended its winning run-on Monday, with blue-chip FTSE 100 index jumped by around half a percent, hitting its fresh seven-week highs as HSBC surged after providing an upbeat outlook. However easing inflation expectations raised doubts over the chances of biggest interest rate hike in 27 years from Bank of England (BoE) on Thursday. It also unveiled its strategy for unwinding some of the £895 billion of stimulus it delivered over the past decade.

HSBC Holdings Plc (LON: HSBA): The share of financial services company, HSBC Holdings Plc jumped by around 8.5%, with a day’s high of GBX 557.20. The company announced a highest profitability target and bullish dividend outlook. The Europe’s biggest bank also pushed back on a proposal by top shareholder Ping, an insurance Group Co of China to split itself.

Pearson Plc (LON: PSON): The share of education group, Pearson Plc jumped by around 10.5%, with a day’s high of GBX 845.00. The company reiterated its full-year profit outlook and said that its new integrated structure under boss Andy Bird was helping to save costs and grow the top line.

Quilter Plc (LON: QLT): The share of the wealth management company, Quilter Plc rallied by around 14%, with a day’s high of GBX 123.80. This came after the major retail and commercial bank, NatWest Group (LON: NWG) is contemplating making an offer for the company.

US Markets: The US market is likely to get negative start, as suggested by the future indices. S&P 500 future was down by 24.91 points or 0.61% at 4,105.00, while the Dow Jones 30 futures was down by 0.39% or 127.87 points at 32,717.26. The technology-heavy index Nasdaq Composite future was down by 0.49% at 12,847.75 (At the time of writing – 9:30 AM ET).

US Market News:

The share of American multinational aerospace company, Boeing (BA) jumped by 5.4% in the premarket trading session after its defence workers will vote on a new proposed labour agreement on Wednesday, averting for now- a strike that could have begun on Monday.

The share of the China-based electric car market, Nio (NIO) jumped by 3% in the premarket trading session after it announced that it will open its first overseas plant to produce power products in Europe for European market in September.

European Indices Performance (at the time of writing):

FTSE 100 Index One Year Performance (as on 1 August 2022)

(Source: Refinitiv)

Top 3 Volume Stocks in FTSE 100*: Lloyds Banking Group plc (LLOY), Barclays Plc (BARC), Vodafone Group Plc (VOD).

Top 3 Sectors traded in green*: Financials (2.58%), Consumer Cyclicals (0.64%) and Basic Material (0.27%).

Top 3 Sectors traded in red*: Healthcare (-1.18%), Real Estate (-0.46%) and Energy (-0.28%).

London Stock Exchange: Stocks Performance (at the time of writing)

Crude Oil Future Prices*: Brent future crude oil (future) price and WTI crude oil (future) price were hovering at $101.42/barrel and $95.60/barrel, respectively.

Gold Price*: Gold price was quoting at US$ 1,789.70 per ounce, up by 0.44% against the prior day closing.

Currency Rates*: GBP to USD: 1.2225; EUR to USD: 1.0232.

Bond Yields*: US 10-Year Treasury yield: 2.659%; UK 10-Year Government Bond yield: 1.8760%.

*At the time of writing