UK Markets’ Rise on Hopes of Additional Stimulus; FTSE 100 up by 2.94%

US Markets: Broader indices in the United States traded in green - particularly, the S&P 500 index traded 46.67 points or 1.52 per cent higher at 3,113.26, Dow Jones Industrial Average Index expanded by 421.74 points or 1.64 per cent higher at 26,184.90, and the technology benchmark index Nasdaq Composite traded higher at 9,856.54, up by 130.52 points or 1.34 per cent against its previous day close (at the time of writing, before the U.S market close at 12:20 PM ET).

US News: The Wallstreet opened on a positive note as the Fed announced the injection of liquidity by buying back corporate bonds in the secondary market. The rise in the market was also supported by the robust numbers in the retail sales as most states pulled back lock-down. The retail sales accelerated by 17.7 per cent in May. The travel stocks were back in action as Norwegian Cruise Line Holdings Ltd surged around 3.85 per cent and United Airlines Holdings Inc was up by around 3.00 per cent as the sentiments improved. Energy stocks which were dragged in the previous day trade also grew as Exxon Mobil Corp was up by 2.91 per cent and oil giant BP inched up 0.94 per cent. The Apple Inc was also up by 2.01 per cent regardless of European Commission starting an anti-trust investigation Apple’s App Store and Apple Pay platform. The electric vehicle company, Tesla’s stock, was down by 0.94 per cent. In recent development Tesla to source cobalt for its batteries from Glencore. The technology company, NVIDIA Corp stock, was down by 2.22 per cent. The Brent price was up by 2.44 per cent due to the positive signs of demand pickup and production cut.

S&P 500 (SPX)

Top Performers*: Eli Lilly and Co (LLY), Nordstrom Inc (JWN), and Kohls Corp (KSS) stocks jumped by 13.07 per cent, 12.16 per cent and 11.41 per cent, respectively.

Non Performers*: T-Mobile US Inc (TMUS), NVIDIA Corp (NVDA) and DexCom Inc (DXCM) shares decreased by 2.18 per cent, 1.62 per cent and 1.62 per cent, respectively.

NASDAQ Composite (IXIC)

Top Performers*: Clearsign Technologies Corp (CLIR), Urban One Inc (UONEK) and Mid-Con Energy Partners LP (MCEP) shares expanded by 183.91 per cent, 138.23 per cent and 136.23 per cent, respectively.

Worst Performers*: The9 Ltd (NCTY), China HGS Real Estate Inc (HGSH) and Monaker Group Inc (MKGI) shares plunged by 25.22 per cent, 19.38 per cent and 15.91 per cent, respectively.

Top Performer Sectors*: Energy (+4.55 per cent), Industrials (+3.07 per cent) and Financials (+2.93 per cent).

Top Worst Sector*: Telecommunications Services (-0.26 per cent),

Dow Jones Industrial Average (DJI)

Top Performers*: Boeing Co (BA), Caterpillar Inc (CAT) and International Business Machine Corp (IBM) shares zoomed up by around 5.79 per cent, 5.57 per cent and 4.61 per cent, respectively.

Worst Performers*: Pfizer Inc (PFE) share plunged by 0.63 per cent.

European Markets: The London’s broader equity benchmark index FTSE 100 traded at 178.09 points or 2.94 per cent higher at 6,242.79, the FTSE 250 index snapped at 375.53 points or 2.20 per cent higher at 17,464.70, and the FTSE All-Share Index ended 93.28 points or 2.77 per cent higher at 3,455.40, respectively. Another European index STOXX 600 ended up by 10.24 points or 2.90 per cent, at 363.33. Among other major European indices, DAX index closed the session at 12,315.66, up by 404.31 points or 3.39 per cent; CAC 40 index increased by 136.74 points or 2.84 per cent and ended the trading session at 4,952.46.

European News: London and European markets jumped as US Federal Reserve decided to expand corporate bond purchase to contain COVID-19 disruption by boosting liquidity. Meanwhile, the British investors are hoping the Bank of England to increase its asset purchase target by GBP 100 billion. Also, the UK finance ministry stated that it had incurred over GBP 20 billion on a furlough programme. Among the gaining stocks, Cineworld surged around 6.2 per cent post unveiling plans to reopen theatres. Similarly, Greggs soared over 4.8 per cent as it plans to reopen 800 shops from 18^th June 2020 for takeaway only. De La Rue gained 9.2 per cent as the investigation has been closed for its South Sudan business. Moreover, following the optimism over economic rebound, the oil prices surged, and subsequently, oil stocks - BP and Royal Dutch Shell gained around 2.5 per cent and 3.6 per cent, respectively.

London Stock Exchange

Top Three Performers*: SUPERDRY PLC (SDRY), RPS GROUP PLC (RPS) and METRO BANK PLC (MTRO) accelerated significantly by 16.58 per cent, 15.59 per cent and 15.04 per cent, respectively.

Worst Performers*: MACAU PROPERTY OPPORTUNITIES (MPO), PHAROS ENERGY PLC (PHAR) and LOOKERS PLC (LOOK) plunged by 8.37 per cent, 7.64 per cent and 3.70 per cent, respectively.

FTSE 100 Index Performance

3 months FTSE 100 Index Performance (June-16-2020), before the market closed (Source: Refinitiv, Thomson Reuters)

Best Gainers*: CARNIVAL PLC (LON:CCL), ASHTEAD GROUP PLC (LON:AHT) & INTERNATIONAL CONSOLIDATED AIRLINES GROUP S.A. (LON:IAG) leapt up by 11.51 per cent, 11.38 per cent and 9.41 per cent, respectively.

Non Performers*: POLYMETAL INTERNATIONAL PLC (LON:POLY), ADMIRAL GROUP PLC (LON:ADM) and FLUTTER ENTERTAINMENT PLC (LON:FLTR) traded in red zone and decreased by 1.12 per cent, 0.83 per cent and 0.69 per cent, respectively.

3 Active Stocks with Decent Volume*: (LLOY) LLOYDS BANKING GROUP PLC; (BARC) BARCLAYS PLC; (VOD) VODAFONE PLC.

Top Sectors traded in the positive zone*: Telecommunications Services (+4.51 per cent), Consumer Cyclicals (+4.48 per cent) and Financials (+4.35 per cent).

Crude Oil Future Prices*: WTI crude oil (future) price was hovering at $38.36 per barrel, and Brent future crude oil (future) price was trading at $40.92 per barrel.

Forex Rates*: GBP to USD and EUR to GBP were hovering at 1.2581 and 0.8954, respectively.

Bond Yields*: U.S 10-Year Treasury yield was tilting at 0.750 per cent, and the UK 10-Year Government Bond yield was hovering at 0.204 per cent, respectively.

*At the time of writing