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 on the falling FTSE 100 (-0.32%) continue to suffer, with Schroders, Hargreaves Lansdown and Prudential 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 gaining 1.77%.
The euro was down against sterling (0.927), and sterling remained flat against the dollar at 1.206.
Please note this product may not be available to trade in all regions.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.