Fri, 16th Aug 2019
Thursday saw the FTSE 100 end on a low thanks to ongoing concerns about the escalating trade tensions between the United States and China. The markets had expected a bounce back, and saw one, albeit a delayed one after trading failed to start at the usual time.
The FTSE 100 and FTSE 250 both opened 100 minutes late, after a ‘potential trading services’ issue was identified. The delay frustrated many traders, since it was the longest outage for the markets in eight years, and the second outage in the last 14 months. There were, fortunately brief, fears that the outage could signal the start of a trading meltdown for the top two London markets.
When trading did resume, however, the markets bounced back quickly, gaining 0.8 percent shortly after opening. One of the stronger performers in the FTSE 250 was KAZ Minerals, who successfully rebounded after suffering large and surprising losses yesterday. Meanwhile, Fresnillo was one of the poorer performers in the top flight, shedding 0.2 percent as investors returned to the stock markets after having flocked, briefly, to safe-haven assets.
The delay has been attributed to a ‘software issue’, but the nature of the issue was not disclosed. The issues will be a headache for David Swhimmer, who is still relatively new to his position as boss at the LSE. He has been trying to focus on expanding the exchange, and concerns about the stability of the system will not be welcome.