Political Worries Weighs On Investors’ Sentiments

  • May 23, 2019 BST
  • Team Kalkine
Political Worries Weighs On Investors’ Sentiments

Global Markets: Equity indices in the United States were plunging considerably, with the  Dow Jones Industrial Average slumped by 436.85 points or 1.69% and quoting at 25,339.76, the S&P 500 index declined by 50.89 points or 1.78% against the yesterday’s close and trading at 2,805.38 and the technology stocks weighted index Nasdaq Composite was quoting at 7,589.23 and fell off by 161.62 points or 2.09% against the previous day close, at the time of writing.

Global News: Amid worries that an escalating trade war between the world’s two biggest economies would curb global growth, stock indexes fell more than 1 per cent on Thursday. Data from IHS Markit showed new orders in manufacturing fell for the first time since August 2009 and manufacturing PMI fell to a nine-and-a-half-year low of 50.6 this month from 52.6 in April, providing evidence that the trade war is hitting the domestic economy.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 103.15 points or 1.41% lower at 7,231.04, the FTSE 250 index snapped 276.06 points or 1.43% lower at 19,031.21, and the FTSE All-Share Index ended 55.86 points or 1.39% lower at 3,957.01 respectively. European benchmark index STOXX 600 ended 5.40 points or 1.42% lower at 373.79 respectively.

European News: Prime Minister Theresa May is under intense pressure from her own MPs to resign after her final Brexit gambit failed to win support. Citing fundamental differences, Andrea Leadsom quit as the Leader of the House of Commons. Mrs May has abandoned plans to publish on Friday her withdrawal agreement bill and is rewriting her Brexit deal to head off a full-scale cabinet revolt.

London Stock Exchange (LSE)

Top Performers Stocks: MITCHELLS & BUTLERS PLC (MAB), LOW & BONAR PLC (LWB), and MERLIN ENTERTAINMENTS PLC (MERL) surged by 8.87 per cent, 7.92 per cent and 7.55 per cent respectively.

Top Laggards Stocks: PREMIER OIL PLC (PMO), ENQUEST PLC (ENQ) and MITIE GROUP PLC (MTO) decreased by 13.61 per cent, 12.23 per cent and 11.48 per cent respectively.

FTSE 100 Index

FTSE100 Index: 5-days Price Chart as on May 23, 2019. (Source: Thomson Reuters)

Top Risers Stocks: INTERNATIONAL CONSOLIDATED AIRLINES GROUP S.A. (IAG), ASTRAZENECA PLC (AZN) and FRESNILLO PLC (FRES) rose by 1.27 per cent, 1.26 per cent and 0.58 per cent respectively.

Top Fallers Stocks: MORRISON (WM) SUPERMARKETS PLC (MRW), TUI AG (TUI) and MELROSE INDUSTRIES PLC (MRO) reduced by 5.80 per cent, 5.13 per cent and 4.47 per cent respectively.


Top Performer Sector: Healthcare (+0.49%).

Top Fallers Sectors: Energy (-2.66%), Telecommunications Services (-2.17%) and Technology (-1.85%).

Foreign Exchange and Fixed Income

FX Rates*: GBP/USD and EUR/GBP were exchanging at 1.2657 and 0.8833 respectively.

10-Year Bond Yields*: US 10Y Treasury and UK 10Y Bond yields were trading at 2.305% and 0.942% 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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