Commodities Pull Down Britain’s FTSE Amid Trade Worries
On Thursday, Britain’s FTSE fell as the bank and commodities-related stocks dropped on the lingering global trade concerns. This demands more defensive plays ahead of an EU summit.
The blue chip’s index made a 0.2 decrease at 7,606.24 points while FTMC dropped 0.4 %.
British shares have enjoyed relief on the past two sessions from the selling price. In spite of this, the US-China trade war and the start of tensions in EU summit made a passive mood. This is ahead to the end of the quarter.
Market Analyst Ken Odeluga of City Index said, “we seem to be hanging on the coattails of everything the White House says.”
“The international flavor of the shares on the FTSE ….means that it should be very much impacted in the same way that you would expect large U.S. corporates on the S&P 500, the DowJones, to be impacted,” Odeluga said.
Meanwhile, the demand for stocks in “safe-haven” is high as the consumer staples and health stocks are elevating.
The BYA fall in sterling also boosted international stock as they earn from the bulk of their revenue in dollars. There was a 0.2% to 1.2% surge in Diageo DGE.L, Imperial Brands IMB.L, and Reckitt Benckiser RB.L.
The biggest gainer was the Pharma firm Shire SHP.L with up to 2.2% high in one month. This was when a group rallied in support of blocking Takeda’s 4502.T acquisition of Shire failed to pass the proposal.
As sectors exposed to the economic cycle, energy and materials lowered most of FTSE 100’s points. There was a recovery in prices of the underlying metals and crude.
Placed under pressure, Banks see that their shares tend to witness bigger swings compared to the rest of the market.
Stocks exposed to UK consumer recovered as shares in Green King GNK.L garnered 7.7% following its earnings in one year.
TSK opens lower amid the decline in commodities
The benchmark index of Canada is likely to open on Thursday as a result of the declining commodity prices.
In the June quarter, stock futures on the S&P TSX index went down to 0.2%. The WTI crude prices were in the red flag.
Meanwhile, Markets are waiting for the announcement of Bank of Canada on July 11.
“Given where the economy is we are in a situation where the economy will warrant higher interest rates. We will ensure that is a gradual process,” Central Bank Governor Stephen Poloz said.
Dragged down by healthcare stocks, the TSX lost 48 points on Wednesday.
