UK stocks continue march higher as Brexit negotiations loom

By Thomas Belayneh The FTSE 100 closed up 0.87% as optimism for a swift economic recovery continues to build and infection rates remain rooted at multi-week lows. This was despite news yesterday that Gilead Science’s phase 3 clinical trials of remdesivir showed no statistically significant improvement for covid-19 patients taking a 10-day course of the

FTSE 100 falls 2.29%: Rolls Royce stalls while Ocado flies

The FTSE 100 shed 2.29% on Friday to close at 6,076.60 as investors feared the announcements of potentially severe sanctions by the US against China, following the Chinese parliament’s formal approval of the controversial new national security law for Hong Kong. Following three straight days of rallying, the FTSE 100 closed lower on the day

UK PMIs beats expectations but inflation readings weak

By Thomas Belayneh A jam-packed week for updates on the state of inflation and economic activity for the UK economy revealed a still weak picture, although a marginal improvement on the dire readings of April. The services PMI (released by IHS Markit) revealed a reading of 27.8 versus market expectations for 25, while the manufacturing

Strong demand for three-year UK gilts

By Thomas Belayneh This morning the UK’s Debt Management Office (DMO) announced the allotments of its latest auction of three-year UK government bonds. The auction was for £3.75 billion at a yield of 0.75%. Incredibly, the issue was heavily oversubscribed with bids totalling approximately £8.15 billion, which was more than two times than what as

Yesterday’s vaccine-induced buoyant mood wears off

By Thomas Belayneh Investor sentiment cooled today after the strong showing of equities yesterday. The FTSE 100 closed a shade lower today at 6,002.23 (0.77% down on Monday’s stellar rise) amidst comments from Rishi Sunak to expect a recession the likes which the UK has never seen before. International consolidated airlines group (Ticker:IAG) lead the

Week ahead: UK Inflation, Retail Sales and PMIs due

By Thomas Belayneh This week’s schedule is jam-packed with updates on important indicators for investors in the UK. Key readings on CPI (Wednesday 20th), Services, Manufacturing and Composite PMI (Thursday 21st) and Retail Sales (Friday 22nd) are due. Taking consumer price inflation first, it will be intriguing to see how food price inflation affects the

US markets mellow following dire economic data

By Thomas Belayneh Retail sales and initial jobless claims were expected to be weak and boy did they deliver. The median forecast for retail sales was -12% – a wise forecast given the widespread “stay-at-home” orders that have shuttered most high-street businesses across the US. However, Friday’s print -16.4% still packed a punch to even

FTSE 100 falls 2.75% as Powell pummels equities

Following Jerome Powell’s particularly sobering speech for equity markets regarding the expected slow recovery for US growth, UK blue chips fell a calamitous 2.75% as wider risk sentiment flailed. 3i Group (Ticker:III), a mid-market private equity group in the UK, rose an astonishing 6.3% as the FTSE 100’s biggest riser held their dividend in light

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