UK Economy Stalls at The Start of the Fourth Quarter

  • Nov 05, 2019 GMT
  • Team Kalkine
UK Economy Stalls at The Start of the Fourth Quarter

Global Markets: Stocks in the United States traded in green, with the Dow Jones Industrial Average Index traded 88.17 points or 0.32% at 27,550.28, the broader S&P 500 index bagged 0.73 points or 0.02% to 3,079.0 and the technology benchmark index the Nasdaq Composite Index increased by 13.63 points or 0.16% to 8,446.84, respectively. (At the time of writing as on November 05, 2019 at 3:00 PM ET)

Global News: On 5th November 2019, Wall Street opened lower post news that the administration could lift tariffs from imports to secure a trade resolution with China. Uber stock was down by 7.1 per cent in value after the company failed to narrow its underlying losses in the previous quarter. Netflix stock was plunged by 1.1 per cent after its competitor Disney+ announced that it will have a permanent library instead of rotating shows on the platform. Tapestry stock was up by 1.8 per cent post coach owner topping estimates because of rising overseas demands. Shake Shack stock plunged massively by 17.5 per cent post reporting reported weak same-store sales and cut its forecast for the year, due in part to cutting its delivery partners to focus on cooperating with Grub hub, whose stock was up 3.83 per cent. Adobe stock was up by 4.9 per cent after reporting earnings better than estimates. Groupon stock was down by 8.7 per cent after its earnings came in below predictions because of the slowing customer traffic and a decline in the international sales.

S&P 500 (SPX)

Top Performers: Regeneron Pharmaceuticals Inc, Xerox Holdings Corp and Adobe Inc are top gainers and increased by 6.47%, 5.71% and 4.90% respectively.

Worst Performers: Occidental Petroleum Corp, Healthpeak Properties Inc, and Prudential Financial Inc are the top three laggards and decreased by 5.79%, 3.97% and 3.43% respectively.

NASDAQ Composite (IXIC)

Top Performers: Sigma Labs Inc, Agile Therapeutics Inc, and FlexShopper Inc are top gainers and increased by 42.48%, 25.84% and 25.57% respectively.

Worst Performers: Myriad Genetics Inc, StrongBridge Biopharma Plc and National CineMedia Inc are the top three laggards and decreased by 35.56%, 28.51% and 25.00% respectively.

Top Performing Sectors: Telecommunications Services (up 0.41%), Financials (up 0.28%) and Healthcare (up 0.21%).

Worst Performing Sectors: Utilities (down 0.32%) and Consumer Non-Cyclicals (down 0.56%).

Dow Jones Industrial Average (DJI)

Top Performers: UnitedHealth Group Inc, Boeing Co and Exxon Mobil Corp are top gainers and increased by 1.15%, 1.02% and 0.70% respectively.

Worst Performers: Merck & Co Inc, Walt Disney Co and Coca-Cola Co the top three laggards and decreased by 1.19%, 1.13%, and 0.96% respectively.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 18.39 points or 0.25% higher at 7,388.08, the FTSE 250 index snapped 45.27 points or 0.22% higher at 20,294.99, and the FTSE All-Share Index ended 9.41 points or 0.23% higher at 4,065.31 respectively. Another European equity benchmark index STOXX 600 ended at 404.23, up by 0.82 points or 0.20 per cent.

European News: As the United Kingdom heads towards Christmas election on 12 December, British opposition leader Jeremy Corbyn accused Prime Minister Boris Johnson on Tuesday of seeking to strike a trade deal with U.S. President Donald Trump that would sell off parts of the National Health Service (NHS). Michel Barnier, the Brexit negotiator for the European Union, signalled that the EU would defend its interests in the negotiations on a future relationship with Britain and said that the bloc would not accept any unfair competitive advantage for London, predicting a difficult and demanding negotiation with Britain. Recording one of the lowest readings since Britain was last in recession in 2009, the IHS Markit services Purchasing Managers Index (PMI) edged up to 50.0, as the country got off to a weak start to the final quarter of 2019.

London Stock Exchange*

Top Performers: METRO BANK PLC (MTRO), ANGLO-EASTERN PLANTATIONS PLC (AEP), and ASSOCIATED BRITISH FOODS PLC (ABF) were top gainers and leapt up by 7.06%, 6.78% and 4.98% respectively.

Worst Performers: WOODFORD PATIENT CAPITAL TRUST PLC (WPCT), RANK GROUP PLC (RNK), and ASCENTIAL PLC (ASCL) were the top three laggards and dipped by 6.86%, 5.87% and 5.38% respectively.

FTSE 100 Index*

 5 days share price performance (November-05-2019), before the market closed (Chart sourced from Thomson Reuters)

Top Gainers: ASSOCIATED BRITISH FOODS PLC (ABF), SCHRODERS PLC (SDR) and GLENCORE PLC (GLEN) were top performers and accelerated by 4.98%, 3.91% and 2.76% respectively.

Top Laggards: HISCOX LD (HSX), RENTOKIL INITIAL PLC (RTO) and AVEVA GROUP PLC (AVV) were the poor performers and tumbled by 2.64%, 1.70% and 1.65% respectively.

Volume Leaders: (LLOY) LLOYDS BANKING GROUP PLC; (GLEN) GLENCORE PLC; (BP.) BP PLC.

Best Performing Sectors: Energy (up by 1.38%), Basic Materials (up 1.12%), and Financials (up by 0.34%).

Worst Performing Sectors: Healthcare (down 0.73%), Technology (down 0.65%), and Utilities (down 0.38%).

Forex Rates*: GBP/USD and EUR/GBP were quoting at 1.2886 and 0.8593, respectively.

Bond Yields*: U.S 10-Year Treasuries yield was quoting at 1.855%, and the UK 10-Year Government Bond yield was trading at 0.773%, respectively. 

 

*At the time of writing

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