Worries about China demand and UK consumer spending have sunk the FTSE 100 today, though tech stocks are once again in demand in the US, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Burberry results spark a FTSE 100 rout
“Burberry’s results today were dire, and the shares have reacted with a 16% drop to 14-year lows. But the read across has caught two very different sectors, retailers and mining. It’s not often the two are moved by the same story. The former have been hit by worries that Burberry’s problems are not an isolated case, and that UK consumer spending is on a downward trajectory. Meanwhile, the latter are down on China worries, amplified by the poor GDP figures that spell trouble for demand for raw materials and luxury fashion alike.”
Wall Street higher
“Across the pond, Wall Street has begun the week in strong form, led by Apple, which has managed to hit a new record high in trading. The summer squall in tech stocks last Thursday ended as quickly as it began, and even more lacklustre bank earnings has failed to dampen the mood. Small caps continue to outperform however, building on another of last week’s post-CPI developments, as hopes of a US rate cut in September continue to rise.”
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Recommended Content
Editors’ Picks
AUD/USD: Upside appears capped around 0.6800
AUD/USD halted its multi-day recovery after faltering once again near the key 0.6800 mark on the back of a modest advance in the US Dollar and the bearish performance of the risk-linked galaxy.
EUR/USD keeps its constructive outlook in place so far
EUR/USD printed new monthly highs north of 1.0900 the figure, although it met some renewed downside pressure on the back of the lacklustre recovery attempt in the Greenback ahead of key data releases on Tuesday.
Gold on its route to retest record highs at $2,450
Gold regains its traction and trades in positive territory slightly above $2,420 after dropping toward $2,400 at the beginning of the week. Investors await Fed Chairman Powell's appearance at the Economic Club of Washington.
Ripple whales buy 300 million XRP in two days, altcoin holds steady above key support
Ripple (XRP) noted the highest weekly gains in 2024 over the weekend as XRP holders celebrated the one-year anniversary of Judge Torres’ ruling in the SEC vs. Ripple lawsuit. XRP rallied to a peak of $0.5661 on Saturday, July 13.
Failed assassination marks latest escalation in uncertainty
Following the shocking assassination attempt on former President Donald Trump, the nation is left wondering exactly why it happened as well as what may be coming next. There are already questions about whether the Secret Service, which answers to President Joe Biden, was incompetent or worse.