FTSE 100 turns flat as Wall Street set for lower opening

US Markets: The three major stock indices of Wall Street set for broadly lower opening on Tuesday, 9 November, witnessing a profit-booking after the averages finished at new all-time highs in the previous session, driven by the corporate earnings cheer and the regenerated confidence amidst investors after the United States House of Representatives.passed the one trillion dollar infrastructure bill.

Since 13 October 2021, American equities have been on a roll with the Dow Industrials, the broader S&P 500 and the tech heavy Nasdaq Composite making and breaking newer record highs day-after-day. In the meantime, the NYSE-controlled Dow Jones Industrial Average has breached the psychological level of 36,000 for the first time ever, Nasdaq Composite surpassed the mark of 16,000 and S&P 500 has exceeded 4,700, respectively.

The better-than-expected corporate results for the July-September quarter, alongside promising outlook for the upcoming months, have been the major drivers that have steered an elongated rally in the markets. Investors’ jittery have also reduced with the nation reopening the sectors on a larger scale for the first time.

Global Market retreats record highs

In the three months to September of 2021, the businesses operated with the minimum possible restrictions for the first time in the pandemic era, effectively boosting the earnings. With the hopes of increased footfalls and the subsequently higher proportion of consumer spending in the upcoming months, the investors have remained bullish, sidelining a section of uncertain actions.

The positive macroeconomic developments have also complemented the so-called bull run with the rate of unemployment sliding continuously and the number of Americans seeking the unemployment benefits shrinking gradually week-after-week.

US Market News: The futures linked to the Dow Jones Industrial Average traded 0.18% lower at 36,245, indicating a negative to flat Wall Street opening. The US Bureau of Labor Statistics data showcased an increase of 0.6% in the producer prices for the month of October 2021. Earlier in September of 2021, the producer prices rose by 0.5%.

Considerable increases in the prices of goods including gasoline in the corresponding month contributed substantially to the rising producer prices.

Shares of Robinhood dropped 4% after the California-headquartered discount brokerage firm reported a data breach for nearly 5 million customers. Investors are awaiting the cues from speech by US Federal Reserve Chairperson Jerome Powell followed by the speech of Bank of England’s Governor Andrew Bailey, scheduled to commence at 1600 GMT.

UK Markets: London equities wobbled during the session so far on Tuesday, with the benchmark FTSE 100 tip-toeing near the psychological level of 7,300. The index slipped into the negative territory after the Dow futures indicated a flat to moderately lower opening of Wall Street.

Shares of Associated British Foods emerged as the lead gainers among the 101 components of FTSE 100 with the shares rising more than 7%. The corporation has declared a final dividend and a special dividend, effectively complementing the investors after skipping the dividend payments in FY20.

Other major gainers include Rolls Royce Holdings, Ocado Group, BT Group, Vodafone Group and Pearson. Amid the top 20 shares by market capitalisation, the stocks of British American Tobacco and Reckitt Benckiser witnessed major appreciation with the shares rising by nearly 1%. On the other hand, the shares of market capitalisation leaders AstraZeneca and HSBC Holdings shed up to 0.70%.

The headline FTSE 100 moved up by 8.09 points, or 0.11% higher to 7,308.49, while the mid-cap heavy FTSE 250 added 15.36 points, or 0.06% to 23,555.28.

FTSE 100 (9 November)

Source: EODHD/Others

Market Snapshot

Top 3 volume leaders: Lloyds Banking Group, Rolls-Royce Holdings and Barclays

Top 3 sectoral indices: Food Products, Personal Goods and Telecommunications

Bottom 3 sectoral indices: Automotive, Household Goods and Insurance

Crude oil prices: Brent crude up 0.47% at $83.82/barrel; US WTI crude up 0.62% at $82.44/barrel

Gold prices: An ounce of gold traded at $1,829.60, up 0.09%

Exchange rate: GBP vs USD - 1.3546, down 0.11% | GBP vs EUR - 1.1690, down 0.07%

Bond yields: US 10-Year Treasury yield - 1.443% | UK 10-Year Government Bond yield - 0.8300%

Markets @ 14:20 GMT