Market Cheers US Rate Cut Hope

  • Jun 05, 2019 BST
  • Team Kalkine
Market Cheers US Rate Cut Hope

Global Markets: Shares at the Wallstreet were trading in green, with the broader Index S&P 500 was quoting at 2,822.81 and added 19.54 points or 0.70% in the Wednesday’s session, the Dow Jones Industrial Average gained 190.24 points or 0.75% and quoting at 25,522.42 and the technology benchmark index Nasdaq Composite was trading at 7,564.57 and increased by 37.46 points or 0.50% against the previous closing level, at the time of writing.

Global News: US stocks gained on Wednesday and treasuries market resumed its rally after private-sector jobs rose by 27,000 last month, adding fewest jobs since 2010 and much below expectations of a 180,000 increase. Weak jobs data raised the odds that the central bank would cut interest rates, leading to two-year yields hitting their lowest since December 2017, prompted by buying of US government debt. Offering a glimmer of hope for Mexico and American businesses, trade adviser Peter Navarro said the plan to impose tariffs on Mexican goods might not materialise.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 5.93 points or 0.08% higher at 7,220.22, the FTSE 250 index snapped 64.01 points or 0.34% higher at 19,072.17, and the FTSE All-Share Index ended 4.79 points or 0.12% higher at 3,952.92 respectively. European benchmark index STOXX 600 ended 1.41 points or 0.38% higher at 374.08 respectively.

European News: The IHS Markit/CIPS services Purchasing Managers' Index (PMI) rose from 50.4 in April to 51.0 last month, indicating that the British economic growth was almost ground to a halt last month due to the Brexit crisis and weaker global growth. Composite PMI remained near its weakest readings since 2012. With hints of the US rate cut, the FTSE 100 rose slightly on Wednesday. Better than expected services sector and a weaker dollar helped Sterling to rise to a seven-day high, though it has remained under pressure of late.

London Stock Exchange (LSE)

Top Performers Stocks: PROVIDENT FINANCIAL PLC (PFG), THOMAS COOK GROUP PLC (TCG), and ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC (AML) surged by 16.10 per cent, 10.91 per cent and 5.42 per cent respectively.

Top Laggards Stocks: ENTERTAINMENT ONE LTD. (ETO), CARPETRIGHT PLC (CPR), and COUNTRYWIDE PLC (CWD) decreased by 16.67 per cent, 14.71 per cent and 9.58 per cent respectively.

FTSE 100 Index

FTSE100 Index: 5-days Price Chart as on June 05, 2019. (Source: Thomson Reuters)

Top Risers Stocks: SAGE GROUP PLC (SGE), ASSOCIATED BRITISH FOODS PLC (ABF) and UNITED UTILITIES GROUP PLC (UU.) rose by 3.25 per cent, 2.55 per cent and 2.54 per cent respectively.

Top Fallers Stocks: HARGREAVES LANSDOWN PLC (HL.), NMC HEALTH PLC (NMC) and JOHNSON MATTHEY PLC (JMAT) reduced by 6.80 per cent, 4.64 per cent and 1.91 per cent respectively.

Top Active Volume Leaders: LLOYDS BANKING GROUP PLC, VODAFONE GROUP PLC, and BARCLAYS PLC.

Top Risers Sectors: Utilities (+1.70%), Technology (+1.50%), and Industrials (+0.84%).

Top Fallers Sectors: Basic Materials (-0.72%), Healthcare (-0.32%) and Telecommunications Services (-0.29%).

Foreign Exchange and Fixed Income

FX Rates*: GBP/USD and EUR/GBP were exchanging at 1.2696 and 0.8845 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were trading at 2.123% and 0.864% respectively. 

*At the time of writing

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

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