It can be assumed that the global investors are in the dicey position. Earlier, there were increased worries about the global economic slowdown and the market players were also concerned about the trade tensions prevailing between the US and China. However, later on, the market participants took a sigh of relief after the US jobs report for the month of December 2018 were released and when the US Federal Reserve stated that they would be patient when it comes to interest rate hikes. However, recently, there were talks between the US and China to solve the ongoing trade battle. However, it can be assumed that not much information about the trade talks is available which has increased the worries among the market participants.
Meanwhile, the global investors were also waiting for the minutes of the Federal Reserve meeting and after the release of these minutes, the sentiments of the global investors were supported. Another major concern for the market participants is the volatility which is being witnessed in the oil prices.
As the retail giants like Debenhams and Marks and Spencer cope with the lowest Christmas sales since the financial crisis in 2008 and also prepare for the possibilities around a hard Brexit, the investors took note adding to the overall global economic slowdown.
On January 10, 2019, during the day, the markets were trading marginally lower as FTSE 100 index was down by 0.081% while FTSE 250 index was down 0.11%. In addition, the French stock market index CAC-40 was also trending lower and STOXX 600 too was marginally down. The day on day rise and fall in the UK and European stock markets exhibit the ongoing uncertainty and cautious consumer behaviour towards investments.
On a rather good note, FTSE 100 closed at 6,942.87, up by 0.53% while FTSE 250 was up 0.12%. The end-day recovery can be attributed to the fact that investors gained some clarity and overlooked the unnecessarily persistent worry around US-china trade talk and a weakening of the UK retail sector induced by the Brexit situation. Investor sentiment was still driven by the news in the automotive space as industry giants Jaguar and Ford announced to cut jobs ahead of March 29 verdict.
Talking of the stocks, the UK registered and Mexico-based precious metals mining company FRESNILLO (FRES) emerged as a key gainer, up by 3.06 % at GBX 949.60 followed by the energy, phone and broadband supplier SSE up by 2.49 % and TESCO (TSCO) up by 2.17 %.
As for the fallers, the multinational miner BHP GROUP’s (BHP) shares plummeted by a steep 5.32 % closing at 1616.60 (as it traded ex-dividend) followed by the British luxury fashion brand BURBERRY GRP (BRBY) down at 1742 by 2.68%.
After the midday fall, even the pan-European STOXX 600 closed off at 348.88, up by 0.34% and CAC-40 index closed at a lower level, also exhibiting slight rebound after the aforementioned collapse.
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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