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Highlights
- FTSE100 trades in the negative zone down by over 1% near its crucial support level of 7,000.
- European Central Bank (ECB) has decided to slow down its pandemic bond-buying program amid the recovery in the European economy.
FTSE100 trades in the red zone, down by over 1% at 7,023, while the mid-cap focused FTSE250 index trades at 23,717, down by 0.55%. The UK stock market and the European markets are trading lower following the European Central Bank (ECB) decision to slow down the pandemic bond buying program amid the recovery in the European economy. As per the market experts, the ECB bond buying could fall as low as 60 billion euros a month from current levels of 80 billion euros a month.
Top five FTSE100 gainers
B&M European Value Retail SA (1%), Persimmon plc (0.63%), M&G plc (0.63%), Halma plc (0.62%), Intertek Group plc (0.49%).
Top five FTSE100 losers
International Consolidated Airlines Group SA (-3.54%), Melrose Industries plc (-3.50%), Coca-Cola HBC AG (-3.16%), DCC plc (-2.83%), Polymetal International plc (-2.75%)
European Markets
Major European market indexes are trading in the red. The German blue-chip DAX index is down by 0.08% at 15,597, while the benchmark index of France, CAC 40, was at 6,659, down by 0.15%. The European stock markets are reacting to the central bank’s decision to taper the bond buying. The European economy has displayed healthy signs of recovery after the pandemic shock. Inflation in the Eurozone rose to 3% in August 2021, which pushed ECB to take some steps to curb inflation. However, the ECB has decided not to raise interest rates for the time being.
Currency Markets
The pound traded higher against the dollar at 1.3846, up by 0.57%, after the previous close of 1.3768, while the EUR/ GBP currency pair traded at 0.8538, down by 0.43%. The dollar trades lower and sees selling pressure from traders ahead of the US Initial Jobless Claims for the week ended 3 September 2021.
Commodities
WTI crude oil future contract traded at USD 68.17, down by 1.63%, while the Brent crude oil trades at USD 71.56, down by 1.43%. Crude oil prices are trading lower as investors fear lower demand for fuel amid a rise in delta variant cases. Also, the US crude oil production could fall more than the previous forecast due to Hurricane Ida.
Meanwhile, the Gold futures contract traded in the green, up by 0.05% at USD 1794 per ounce.
Asian Markets
Major Asia Pacific indexes made a mixed closing. Shanghai Composite of China closed at 3,693, up by 0.49%, while the Hang Seng index closed in red, down by 2.30% at 25,716. Nikkei 225 of Japan managed to close above the 30,000 level at 30,008, down by 0.57%, India’s Nifty 50 closed at 17,369, down by 0.09%, while Australia’s ASX200 closed at 7,369, down by 1.90%.
