The financial experts, analysts, investors, and traders alike have been interested in the two macro events of the U.S – China trade war and the United Kingdom’s departure from the European Union for the longest time. The global financial markets have been uncertain of their long-term intent with the developments of the two events going back and forth. For the first time in almost two years, however, U.S – China trade war and Brexit now appear to be heading in the right direction.
Following the announcement after the recent meeting of Prime Ministers Boris Johnson (U.K) and Leo Varadkar (Ireland) that a Brexit deal is closer than the world would have thought, the FTSE 100 index has started to show optimism. The market opened around 7,186 level on Friday, October 11th, 2019. With a significant hike for the day, the daily high was reported at 7,248 level. Towards the end of the day, there was a slight drop in the index that closed at 7,239 level. The weekly progress for Footsie was highlighted as around 1.3%.
Banks And House Builders Among The Best Performing Stocks On FTSE 100 Index
Following the optimism that stemmed from U.S – China trade negotiations on Thursday and Friday, as well as the prospects for a Brexit deal, the best performance was observed in the stocks of housebuilders and banks. In the league of banks, Lloyds (Lloyds Banking Group) and RBS (Royal Bank of Scotland Group) were reported to have presented the highest gains for the day with an increase of 12.28% and 14.37% respectively. In house builders, on the other hand, names like Persimmon, Barratt Developments, and Taylor Wimpey stole the show with 11.97%, 11.04%, and 12.28% daily gain respectively.
FTSE 100 Exporters Received A Blow
Since Pound Sterling has managed to break all bounds and have hiked to a gain of as much as around 2.5% against the U.S Dollar on Friday, FTSE 100 exporters like Diageo, British American Tobacco, Unilever, GlaxoSmithKline, and Imperial Brands, remained in the red zone on October 11th, 2019. The share price for Diageo fell by 3.64% on Friday, GSK by 2.61%, Unilever by 2.56%, Imperial Brands by 2.03%, while British American Tobacco took the lead with a shocking 4.47% decline in the price.
With the Brexit and U.S – China trade-related developments unfolding quickly, analysts are expecting the next week to be an exciting one for the investors not only in the stock market but also in the market for foreign exchange.