FTSE 100 slides as BoE warns of UK’s deteriorating economic outlook

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FTSE 100 slides as BoE warns of UK’s deteriorating economic outlook

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 FTSE 100 slides as BoE warns of UK’s deteriorating economic outlook
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UK Market: The UK stock reversed all their gains of the last session on Tuesday, with the blue-chip FTSE100 index losing over 2%. Amid recessionary fears, the Bank of England (BoE) has warned in its most recent Financial Stability Report that the economic outlook for the UK, as well as the rest of the world, has depreciated substantially. Inflation has been hitting the roof amid rising global energy prices. However, BoE believes that the economic storm could be weathered by UK banks by maintaining additional money in rainy day funds.

J Sainsbury plc (LON: SBRY): The shares of the UK’s leading supermarket chain, J Sainsbury plc, gained 0.53%, with a day’s high of GBX 209.50. This happened after the company released its Q1 trading update showing decent grocery volume market share performance and an unaffected outlook.

Croda International Plc (LON: CRDA): The shares of the British speciality chemicals business, Croda International Plc, were up by 2.62%, with a day’s high of GBX 6,748.00. The company announced that it would use Government funding to establish a new vaccine facility in Pennsylvania.

Rolls-Royce Holdings Plc (LON: RR.): The shares of the British aerospace company, Rolls-Royce Holdings Plc, plunged by 7.51%, with a day’s low of GBX 80.04. The company has urged the UK Government to endorse its mini nuclear reactor project within the next six months and not delay it anymore.

US Markets: The US market is likely to get a sluggish start after a long weekend, as indicated by the futures indices. S&P 500 future was down by 50.75 points or 1.33% at 3,776.50, while the Dow Jones 30 future was down by 1.29% or 402 points at 30,658.00. The technology-heavy index Nasdaq Composite future was also down by 1.35% or 156.50 points, at 11,456.00. (At the time of writing – 9:20 AM ET).

The shares of the American automotive company, Tesla (TSLA), plunged by 1% in the premarket trading session. The vehicle sales of the company have dropped by 17.9% in Q2 as compared to Q1, way below analysts’ predictions.

The shares of the American oil and gas firm Exxon Mobil (XOM), surged by 1.3% in the premarket trading session. The company has recently announced that its earnings in Q2 could be as high as $18 billion.

 European Indices Performance (at the time of writing):

 

FTSE 100 Index One Year Performance (as on 5 July)

                                                     (Source: Refinitiv)

Top 3 Volume Stocks in FTSE 100*: Lloyds Banking Group plc (LLOY), Vodafone plc (VOD), Glencore (GLEN)

Top 3 Sectors traded in red*:  Energy (-4.58%), Basic Materials (-4.48%), Financials (-2.64%)

Top Sector traded in green*: Real Estate (0.91%)

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 $106.88/barrel and $102.87/barrel, respectively.

Gold Price*: Gold price was hovering at around US$ 1,790.05 per ounce, down by 0.67% against the prior day's closing.

Currency Rates*: GBP to USD: 1.1965; EUR to USD: 1.0272.

Bond Yields*: US 10-Year Treasury yield: 2.809%; UK 10-Year Government Bond yield: 2.0730%.

*At the time of writing

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