FTSE 100 trades in green led by retail and mid-cap stocks

Summary 

  • FTSE 100 trades in positive territory boosted by the gains in the retail segment stocks.
  • Merger and acquisitions activities in the mid-cap companies pushed the FTSE 250 index to record high levels.

FTSE 100 trades in the green zone on the first trading day of the new week led by the gain in the retail-sector stocks like the Next Plc up by 2.87% and JD Sports Plc up by 3.81%, as investors anticipate that the opening up of physical stores at total capacity and ease in restrictions will favour the retail segment with high household savings during the lockdown period and pent-up demands for the clothing and accessories.

Mid-cap focused FTSE250 was also up by 1.46%, trading above the 23,000 mark at 23,283 levels. The merger and acquisitions activity in mid-cap companies have helped push the index to record levels. Manufacturing group Meggitt Plc agreed to a bid from the US-based firm Parker-Hannifin Corporation worth 800p per share, while the asset management firm Sanne Group Plc received a 902p per share offer from the Apex Group Plc.

European Markets

Major European market indexes are trading in the positive territory on Monday, taking cues from the bounce back in the Asian markets. German blue-chip DAX index is up by 0.06% at 15,552, while the benchmark index of France, CAC 40, was at 6,662, up by 0.76%.

Currency Markets

The pound trades higher at 1.3906, up by 0.04% against the US dollar; the dollar trades range-bound ahead of the key US employment data later in the week, which could influence the US Federal Reserve policy decision. In its last meet in July, the central bank Chairman Jerome Powell said the interest rate hike will take longer than expected, as the US job market still has some ground to cover before the central bank members agree to the interest rate hike. The EUR/ GBP currency pair traded at 0.8549, up by 0.15%.

Commodities

WTI crude oil future contract traded at USD 72.81, down by 1.54%, while the Brent crude oil trades at USD 74.43, down by 1.30%. The crude oil prices declined after China’s economy, the second-largest oil consumer, showed signs of a slowdown. The latest survey showed growth in the factory activity slipped sharply in July because of slow demand.

Meanwhile, the Gold August futures contract was trading in the red, down by 0.29% at USD 1,811 per ounce.

Asian Markets

Major Asia Pacific indexes bounced back and closed the day in green, with Australia’s ASX200 snapping the session at 7,491, up by 1.34%. Shanghai Composite of China closed in green, up by 1.97% at 3,464. Nikkei 225 of Japan also closed in the green, up by 1.82% at 27,781, while Hong Kong’s Hang Seng index closed at 26148, up by 0.93%. India’s Nifty 50 closed at 15,885, up by 0.77%.

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