London Equities Shine, Driven by Surprise Surge in China’s Exports

  • May 07, 2020 BST
  • Team Kalkine
London Equities Shine, Driven by Surprise Surge in China’s Exports

US Markets: Broader indices in the United States traded in green - particularly, the S&P 500 index traded 40.48 points or 1.42 per cent higher at 2,888.90, Dow Jones Industrial Average Index expanded by 325.73 points or 1.38 per cent higher at 23,990.37, and the technology benchmark index Nasdaq Composite traded higher at 8,970.19, up by 115.80 points or 1.31 per cent against its previous day close (at the time of writing, before the U.S market close at 11:20 AM ET).

US News: Wall Street opened higher in Thursday’s trading session, while US-China negotiators could meet next week to discuss the trade agreement. Meanwhile, another 3.2 million jobless claims added last week, bringing the total to 33.5 million people since mid-March. Among the gaining stocks, Ulta Beauty and Kohls surged over 2 per cent and 8 per cent, respectively after announcing the reopening of stores from Monday. Also, PayPal soared over 12 per cent post reporting a 17 per cent increase in April revenue. Peloton jumped over 10 per cent as its revenue surged around 66 per cent in the last quarter. Similarly, following the oil price jump, the energy major Exxon Mobil and Chevron rose about 1.47 per cent and 2.45 per cent, respectively. Adjacently, Moderna jumped over 7 per cent post receiving FDA approval for Covid-19 vaccine trail. In contrast, Spirit Airlines tumbled over 13 per cent weak reporting poor financials than expected. 

 S&P 500 (SPX)

Top Performers*: Ameriprise Financial Inc, Fortinet Inc, and Iron Mountain Inc shares increased by 19.52 per cent, 16.03 per cent and 14.19 per cent, respectively.

Non Performers*: Ball Corp, Danaher Corp and ANSYS Inc shares decreased by 5.02 per cent, 3.60 per cent and 3.00 per cent, respectively.

NASDAQ Composite (IXIC)

Top Performers*: Tetraphase Pharmaceuticals Inc, Genius Brands International Inc and Huitao Technology Co Ltd shares expanded by 117.71 per cent, 62.52 per cent and 33.56 per cent, respectively.

Worst Performers*: SG Blocks Inc, MicroVision Inc and Vascular Biogenics Ltd shares plunged by 26.06 per cent, 22.26 per cent and 20.86 per cent, respectively.

Top Performing Sectors*: Telecommunications Services (+4.72 per cent), Financials (+2.83 per cent) and Industrials (+1.47 per cent).

Top Worst Sector*: Energy (-0.04 per cent).

Dow Jones Industrial Average (DJI)

Top Performers*: Boeing Co, Dow Inc and Travelers Companies Inc are the top gainers and increased by 5.02 per cent, 3.54 per cent and 3.52 per cent, respectively.

Non Performers*: Merck & Co Inc, Pfizer Inc and Procter & Gamble Co shares decreased by 1.76 per cent, 1.72 per cent and 0.51 per cent, respectively.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 82.22 points or 1.41 per cent higher at 5,935.98, the FTSE 250 index snapped at 265.47 points or 1.66 per cent higher at 16,247.94, and the FTSE All-Share Index ended 45.85 points or 1.42 per cent higher at 3,270.55, respectively. Another European index STOXX 600 ended up by 3.64 points or 1.09 per cent at 337.98. Among other major European indices, DAX index closed the session at 10,759.27, up by 153.07 points or 1.44 per cent; CAC 40 index increased by 68.06 points or 1.54 per cent and ended the trading session at 4,501.44.

European News: London and European markets surged with positive sentiments brought by China’s exports data in April despite the gloomy earning updates. Meanwhile, The Bank of England signalled that Britain’s economy could shrink by 25 per cent in the second quarter of 2020 (ending three months to June) and unemployment could hit around 9 per cent. Among the gaining stocks, Zalando soared over 10 per cent post stating about recovery from lockdown. Similarly, AA PLC rose over 14 per cent, after reporting a strong operational and financial performance in FY20. Among the laggards, International Consolidated Airlines Group SA shed over 3 per cent post reporting no sign of recovery (as good as 2019) until 2023. BT Group plunged over 8 per cent after pulling its financial outlook and suspending dividend. Also, Rolls-Royce shed over 4 per cent as it is planning to slash around 8,000 jobs.

London Stock Exchange

Top Performers*: CINEWORLD GROUP PLC (CINE), AA PLC (AA.) and REACH PLC (RCH) accelerated significantly by 13.67 per cent, 11.38 per cent and 9.31 per cent, respectively.

Worst Performers*: POLYPIPE GROUP PLC (PLP), TUI AG (TUI) and HYVE GROUP PLC (HYVE) plunged by 12.24 per cent, 10.94 per cent and 10.58 per cent, respectively.

FTSE 100 Index Performance

 3 months FTSE 100 Index Performance (May-07-2020), before the market closed (Source: Refinitiv, Thomson Reuters)

Best Gainers*: JD SPORTS FASHION PLC (JD.), RSA INSURANCE GROUP PLC (RSA) and ANGLO AMERICAN PLC (AAL) expanded by 7.49 per cent, 6.82 per cent and 6.38 per cent, respectively.

Non Performers*: BT GROUP PLC (BT.A), ADMIRAL GROUP PLC (ADM) and INTL CONSOLIDATED AIRLINES GROUP SA (IAG) traded in red zone and were down by 8.20 per cent, 3.91 per cent and 3.71 per cent, respectively.

Top Shares traded with high-level volume*: (LLOY) LLOYDS BANKING GROUP PLC; (BT.A) BT GROUP PLC; (BARC) BARCLAYS PLC.

Top Sectors traded in the positive zone*: Technology (+3.62 per cent), Basic Materials (+3.47 per cent) and Consumer Cyclicals (+2.70 per cent).

Top Sectors traded in the negative zone*: Healthcare (-2.08 per cent), Telecommunications Services (-2.05 per cent), and Utilities (-0.87 per cent).

Oil Prices*: WTI crude oil future price was nudging at $24.86 per barrel, and Brent crude oil future price was trading at $30.28 per barrel.

Forex Rates*: GBP to USD and EUR to GBP were hovering at 1.2357 and 0.8752, respectively.

Bond Yields*: U.S 10-Year Treasuries yield was tilting at 0.635 per cent, and the UK 10-Year Government Bond yield was hovering at 0.223 per cent, respectively.

 

*At the time of writing.

 


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