Business surveys have highlighted developing risks from the relentless coronavirus pandemic. Businesses exhausting existing order books without refilling them, and households facing the end of unemployment benefits and other support is having a devestating effect on the US economy.
Meanwhile, Asian equity markets ground higher as investors tried to look past gathering tensions with the US and renewed coronavirus lockdowns.
Investors appear to be looking to upcoming company earnings, hoping that global stimulus efforts will result in upbeat outlooks.
FOLLOW OUR LATEST UPDATES HERE:
5pm update: FTSE 100 closes 1.7 percent lower in its worst day since June 24
The bulk of the day’s losses came following a drop in US stocks on Wall Street.
The New York-based stock market dripped as infection rates increased the possibility of new lockdowns in the world’s largest economy.
Weakened oil prices also hit FTSE 100 with BP PLc and Royal Dutch Shell Plc among those bearing the brunt of the falls.
3pm update: The FTSE-100 index was 6119.77, down 36.39 at 2.45pm
2.15pm update: Gold climbs to nine-year high
The precious metal has now surged nearly 20 percent this year, making it the best-performing global asset barring the super-charged FAANG tech stocks which have soared nearly 50 percent, according to Reuters.
12.16pm update: China’s markets continue charge
Chinese stocks recorded their longest winning streak in two years and the yuan strengthened past 7 per dollar overnight.
National Australia Bank FX strategist Rodrigo Catril said: “Broadly speaking, the Chinese economy is coping better not only with a recovery but also in dealing with the potential of a second wave.
“Rightly or wrongly, that market is liking the idea that the yuan can strengthen on the back of equity inflows.”
11.48am update: Investors are ‘adding safe havens’ – expert
An expert has claimed investors are currently “hedging their positions” by “adding safe havens” during the fallout from the coronavirus crisis.
Hussein Sayed, market strategist at FXTM, said: “If investors truly believed the economy was returning to pre-pandemic levels soon, gold wouldn’t be standing today at 9-year highs, so it’s evident that investors who are participating in this risk-on rally are also hedging their positions by adding safe havens.”
11.23am update: ‘Sentiment mixed’ across markets – expert
An expert warned investors are currently “holding back” after announcments from the Chancellor on Wednesday.
David Madden, analyst at CMC Markets, said: “Market sentiment right now is largely mixed as investors are holding back to get a sense of the effect of the announced stimulus package.”
11.03am update: London’s FTSE 100 edges lower
London’s FTSE 100 edged lower on Thursday. It comes following Chancellor Rishi Sunak’s £30billion package on Wednesday.
Persimmon, Taylor Wimpey and Barratt Development jumped.
It comes after data showed buyers returned to Britain’s property market last month when it reopened from a coronavirus-led lockdown.
10.26am update: Hong Kong shares nudge higher
Hong Kong’s benchmark share index ended higher on Thursday.
At the close of trade, the Hang Seng index was up 80.98 points or 0.31 percent at 26,210.16.
The Hang Seng China Enterprises index rose 0.31 percent to 10,781.89.
Rishi Sunak announced a huge package on Wednesday to help the UK amid the economic damaged caused by the coronavirus crisis.
FTSE 100 was down 0.2 percent.
While FTSE 250 added 0.6 percent.
9.30am update: Erratic start for FTSE
The FTSE has dipped and risen erratically this morning, in the wake of Rishi Sunak’s £30bn jobs pledge.
The FTSE closed at 6,156 yesterday and has remained roughly at the same level, despite dropping to 6,139 earlier this morning.
After rising to 6,170 on open, as of 9.30am it is now sitting at 6,151.
More to follow…
Published at Thu, 09 Jul 2020 05:28:00 +0000