Hong Kong riots rattle Wall Street

Heading into the close the FTSE 100 is down 30 points, at 6618, as the biggest British banks lead the market lower.

Outside the New York Stock Exchange
Source: Bloomberg

Banks lead FTSE lower

In London, Standard Chartered and HSBC have been hammered by the riots in Hong Kong. The unease in the Far East has sent a shockwave around the world, and the London-listed finances houses have seen their shares take a tumble as both have large exposure to Asia.

There is no stopping the selloff in the supermarkets as the high street names still remain unpopular with dealers. Sainsbury’s will issue a trading statement on Wednesday but it will be a tough sell to talk round traders.

Mining stocks keep sinking, and concerns over global demand for metals is chipping away at share prices.

Shareholders in Balfour Beatty must be fuming with the company’s board of directors for rejecting the Carillion takeover bid last month. The construction company issued a profit warning, sending its shares to an 11-year low.

DreamWorks lifted by Softbank interest

In the US, the Dow Jones is down 75 points, at 17,037, as the rumblings in Hong Kong have weighed on Wall Street.

TIBCO Software is up 20% following news that it is being taken over by private equity house Vista Equity Partners for $4 billion. In other M&A news, shareholders in DreamWorks Animation are living the dream after SoftBank expressed an interest in acquiring the company. The stock has risen 17% following the news.

Gold hovers around $1220

Gold is hovering around the $1220 level. The US jobs report on Friday could paint a clearer picture as to what the Federal Reserve will do regarding interest rates, and gold is being squeezed on two fronts. First the strong greenback and second the potential shift to interest-bearing products should the Fed raise rates. Friday’s COT report showed speculators had reduced their bullish bets on gold to the lowest levels since January.

Euro stems dollar advance

The euro and the pound have managed to stem the advance of the almighty dollar, but it is more to with traders banking their profits from the dollar bull run.

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. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.