Global And Political Headwinds Drags FTSE 100 Down

Global Markets: On the last trading day of this week, benchmark indices in the United States were trading in red, with the S&P 500 Index fall off 11.44 points or 0.40 per cent to 2,864.88, the Dow Jones Industrial Average declined marginally by 0.22 per cent or 56.16 points lower against the yesterday’s session at 25,806.52 and the technology benchmark index Nasdaq declined by 56.74 points or 0.72 per cent to 7,841.31 respectively, at the time of writing.

Global News: US equity fell after three consecutive days of gain after a hardline approach to the trade war was taken by People's Daily, the Chinese government's mouthpiece. The Trump administration decided to delay making a decision on whether to impose tariffs on auto imports for as long as six months. However, the administration confirmed the ruling labelling auto imports as a national security threat, a designation which risks angering US' allies. The country's consumer sentiment index increased by 5.3% to 102.4 in early May, reaching a 15-year high.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 4.89 points or 0.07% lower at 7,348.62, the FTSE 250 index snapped 32.04 points or 0.16% lower at 19,498.61, and the FTSE All-Share Index ended 3.06 points or 0.08% lower at 4,025.27 respectively. European benchmark index STOXX 600 ended 1.37 points or 0.36% lower at 381.51 respectively.

European News: Talks between British Prime Minister Theresa May's government and the opposition Labour Party aimed at breaking the Brexit impasse have ended without an agreement. This put pressure on the British pound, as it sunk to a four-month low against the dollar, indicating that investors are pricing a higher chance of the country leaving the bloc without an agreement.

London Stock Exchange

Top Risers Stocks: METRO BANK PLC (MTRO), ALLIED MINDS PLC (ALM), and GULF MARINE SERVICES PLC (GMS) rose by 26.19 per cent, 15.03 per cent and 7.66 per cent respectively.

Top Fallers Stocks: THOMAS COOK GROUP PLC (TCG), INDIVIOR PLC (INDV) and JUST EAT PLC (JE.) declined by 39.81 per cent, 8.48 per cent and 8.23 per cent respectively.

FTSE 100 Index

FTSE100 Index: 5-days Price Chart as on May 17, 2019. (Source: Thomson Reuters)

Top Performers Stocks: EASYJET PLC (EZJ), TUI AG (TUI) and BUNZL PLC (BNZL) increased by 5.34 per cent, 3.65 per cent and 2.86 per cent respectively.

Top Laggards Stocks: JUST EAT PLC (JE.), HIKMA PHARMACEUTICALS PLC (HIK) and NMC HEALTH PLC (NMC) declined by 8.23 per cent, 2.52 per cent and 2.35 per cent respectively.


Top Performers Sectors: Energy (+0.49%), Consumer Non-Cyclicals (+0.39%), and Basic Materials (+0.34%).

Top Fallers Sectors: Financials (-1.07%), Technology (-0.79%) and Telecommunications Services


Foreign Exchange and Fixed Income

FX Rates*: GBP/USD and EUR/GBP were exchanging at 1.2725 and 0.8772 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were trading at 2.386% and 1.038% respectively.


*At the time of writing

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