Fears Escalate

Fears Escalate

Fiona Cincotta  | Aug 13, 2019 11:08

London stocks continued down, after a negative close on a Wall Street weighed down by fears of a recession, US-China trade tensions and the possible reaction of Chinese authorities to the continuing and increasingly violent protests in Hong Kong.

Asian shares all lost ground, led by the Hang Seng on -1.90%, the Shanghai Composite on -0.76%, and the Nikkei losing -1.11%. US trading followed suit, led by the Dow on -1.48%, and with the S&P500 and the Nasdaq losing -1.22% and -1.20% respectively. The slowing global economy depressed demand for oil, (-0.53%), pushing investors towards safe-haven investments such as gold, which gained just over 1%, and 10-Year US Treasuries, whose yields are now approaching a three-year low.

Financials suffering

Financials on the falling FTSE 100 (-0.32%) continue to suffer, with Schroders (LON:SDR), Hargreaves Lansdown (LON:HRGV) and Prudential (LON:PRU) all among the laggards. Schroders lost -2.69%, while Hargreaves Lansdown lost -2.18% and Prudential was down -1.93%, ahead of the planned break-up of the group. Leading the benchmark were a mix of companies from different sectors. TUI was the lead performer, with its shares up 2.44%, with Just Eat (LON:JE) gaining 1.77%.

The euro was down against sterling (0.927), and sterling remained flat against the dollar at 1.206.

"Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.

Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions."

Original Post

Fiona Cincotta

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