Market News & Analysis

Top Story

Return of investor pessimism

Tuesday’s global market rally, triggered by US President Trump’s postponement of tariffs against Chinese goods, was short lived. Trump changed tack with tweets yesterday calling for a ‘humane’ resolution to the Hong Kong protests from the Chinese government, which could translate into further market weakness in general, and for the Hang Seng in particular.

US and Asia stock markets have mostly dropped sharply, on confirmation that China’s economy is slowing down. US bond markets are flashing recessionary signals, with the inversion of the yield curve. European stocks opened down this morning, Italy, in the grips of renewed political turmoil, saw the FTSE MIB also fall.

Financials in distress

The FTSE100 fell -1.42% in the previous session, dragged down in particular by financials suffering from adverse market conditions. Royal Bank of Scotland shares slumped -7.48%, while Standard Life Aberdeen, Phoenix Group, Aviva and Legal & General all lost more than 2%.

Sustaining the FTSE benchmark was software business Micro Focus International, which gained 2.11% on news of a $200 million share buyback programme. British American Tobacco was up 1.75%, as investors saw value in its takeover of e-cigarette maker Twisp.

Please note these products may not be available to trade in all regions.

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.