Tue, 18th Jun 2019
The FTSE 100 closed down by 15 points, ending the day at 7,715, while US stocks increased slightly. GKN was one of the main stories of the day, producing improved forecasts. Barclays was another standout. The rest of the markets were subdued, however, and while the day’s results were weak overall, volatility was low as investors waited to see what would happen after the government shutdown.
Overall, the FTSE 100 ended the day approximately 15 points lower, while the FTSE 250 gained 1.85 points. Investors used the deadlock in Washington, DC as a chance together their thoughts, and even European equities saw little movement. The Sterling was up by 0.57 percent against the Euro, and gained 0.48 percent against the dollar.
GKN slipped by 1.4 percent. The company lifted its sales forecasts for its electric car, but investors were unimpressed. The company is currently fighting a hostile bid from Melrose Industries, and while the sales increase for the eDrive unit is impressive, investors are still doubtful of the outcome of the bid.
The US markets got off to a firm start, but the optimism did not spread to the London markets. As the FTSE 100 struggled to find direction, it appeared that the positivity in the US had the opposite result in London, and the UK’s leading index finally found some direction after the US opening bell, however, that direction was a downward trend for the index, albeit a rather muted one.