What All You Need To Know About FTSE’s Performance In Wednesday’s Session

  • Feb 13, 2019 GMT
  • Team Kalkine
What All You Need To Know About FTSE’s Performance In Wednesday’s Session

London’s broader equity benchmark FTSE 100 index ended 57.70 points higher against its Tuesday’s closing price.

On Wednesday, Stocks in the United States opened higher, with Financials and Consumer Cyclicals driving the Dow Jones Industrial Average (.DJI), up 117.5 points from its previous close. At the time of writing, the United States broader equity index S&P 500 and technology benchmark Nasdaq Composite also added significant points. Investors’ sentiments got boosted after the US President Donald Trump said he could defer March 1 deadline to impose new tariffs on Chinese goods if ongoing talk between US-China will reach an appropriate closure.

On company specific news at the global level, Hans Vestberg has been elected as new Chairman of Verizon Communication Inc (VZ.N), and his position will be effective from 8 March 2019. On 12 Feb, Ericsson and Intel announced that they would jointly develop infrastructure software for the 5G era.

Coming to the European market, the broader equity benchmark FTSE 100 index traded 57.70 points higher against its previous close, and the index closed Wednesday's session at 7190.84, up 0.81 per cent from its previous close. Another European equity benchmark STOXX 600 traded 0.6 per cent higher against its previous close and ended the session at 364.97.

On company specific updates, copper miner Antofagasta Plc (ANTO.L) ended 2.9 per cent higher amidst the constructive US-Sino trade negotiations. With global copper supply on a volatile front, a constructive agreement between US-China can boost the potential demand of copper. The share of hospitality firm, Whitbread Plc (WTB.L) closed 2.9 per cent higher after the company announced further GBP 2 billion of share buybacks. The Anglo-German tour and travel firm TUI AG (TUI) saw a stock price fall of 6.3 per cent after the company reported a significant loss for the Q1FY19 on Tuesday.

UK Inflation Update: On 13 February, the Office for National Statistics (ONS) reported lowest inflation since Brexit referendum in 2016. Consumer Price Index (CPI) was 1.8% in January as compared to 2.1% in December 2018, a rate below the BoE’s estimated threshold of 2%. Inflation fell in January on account of falling Oil prices in the international market.

Brexit Update: With few days left for Brexit, Downing Street has refused that the British Prime Minister Theresa May is considering a no-deal withdrawal off the table. Meanwhile, BoE chairman Mark Carney in an interview with BBC said that, the businesses in the UK had initiated their contingency planning for a no-deal Divorce or disorderly Brexit. According to Carney, the British economy will be economically poorer in any form of Brexit.

Performers and Laggards on the LSE

Stocks like Countrywide Plc (CWD.L), Thomas Cook Group Plc (TCG.L) and Renewi Plc (RWI.L) were among the top performers on the London Stock Exchange and were up by 10.5%, 9.0% and 8.8%, respectively; while on the other side, stocks like Debenhams Plc (DEB.L), Purecircle Limited (PURE.L) and TUI AG (TUI.L) were the laggards on the London Stock Exchange and were down by 19.1%, 6.7% and 6.3%, respectively.

Stocks like Lloyd Banking Group Plc (LlOY.L), Vodafone Group Plc (VOD.L) and Glencore Plc (GLEN.L) were again top active volume stocks on Wednesday.

Broader benchmark FTSE 100 Cues

Stocks like Smurfit Kappa Group Plc (SKG.L), Smith (DS) Plc (SMDS.L) and Coca-Cola HBC AG (CCH.L) were among the top gainers on the broader index FTSE 100 and up by 6.9%, 4.4% and 3.1% respectively, while on the other side, stocks like TUI AG (TUI.L), Ocado Group Plc (OCDO.L) and Tesco Plc (TSCO.L) were the laggards on the broader index FTSE 100 index and were down by 6.3%, 2.5% and 1.9% respectively.

On sector specific side, Basic Materials, Technology and Energy drove the broader equity benchmark FTSE 100 index and on the other side Healthcare and Utilities performed marginally lower at FTSE 100 on Wednesday.

Commodity Market Cues

At the time of writing,

  • Brent Crude oil was trading higher at $64.16 per barrel
  • West Texas Intermediate Crude was trading higher at $54.28 per barrel.
  • Gold was at $1310.8 an ounce.

London Metal Index Cues

At the time of writing,

  • LME Aluminium was trading at $1840.50 per tonne.
  • LME Copper was trading at $6102.0 per tonne.

Forex Market Cues

At the time of writing,

  • British Sterling Pound was trading against US Dollar (GBP/USD) at 1.285
  • Euro was trading against British Pound (EUR/GBP) at 0.8767
  • US Dollar was trading against majors at 97.15

Money Market Cues

At the time of writing,

  • US 10-year treasury bond was trading at 2.7%
  • British 10-year treasury bond was trading at 1.18%

Key Events to watch this week

  • On 14 February 2019, US-China trade talks.
  • On 15 February 2019, UK Retail Sales MM/YY

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