Market Analysis

 

The FTSE100 ended July on an upbeat note, rising by 1.46% over the month. This surge was fuelled in part by gains during afternoon trade that followed a report that the US and China may restart discussions aimed at resolving trade conflicts. Mining stocks on the FTSE100 leapt as China is a major buyer of industrial and precious metals, including copper. The basic materials and health care sectors led advancers, while the telecommunications and technology groups led decliners. The blue-chip gauge closed up 0.6% on the day at 7,748.76. The FTSE250 closed up 46.9 points at 20,877.87 a gain of 0.23% for the month. The junior AIM also ended the month up 10.39 points or 0.96% at 1,092.84.

 

US stocks climbed, helped by a round of strong earnings reports in the industrials sector, while technology stocks started to bounce back after a three-session downturn. The tech-heavy Nasdaq Composite closed the month up 2.15% to 7,671.79 and the Dow Jones closed on 25,415.19, up by 4.71% on June.

 

The Eurostoxx50 rose by 3.94% over the month to finish on 3,529.40. Tokyo’s main index, the Nikkei225 gained 1.12% in July, to close the month at 22,553.72, with Nintendo making headlines after the company reported operating profit of 30.5 billion yen in the June quarter, compared to the estimates of 25.6 billion yen.

 

On the foreign exchanges, sterling closed the month at $1.31 against the US dollar. The euro closed at €1.12 against sterling and at $1.16 against the US dollar.

 

Brent crude closed the month lower at $74.25 a barrel, closing on a fall of 6.53% for July, the largest monthly decline in two years, due to supply worries after OPEC output reached a 2018 high in July. Gold closed the month down 2.32% at $1,223.95 a troy ounce.

 

 

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