Monday,05 August 2024 16:36:48

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Monday,05 August 2024 at 15:34

(cont'd) In economic releases, a survey revealed the eurozone economy stalled in July as demand for goods and services deteriorated.

US Stocks are likely to see substantial weakness in early trading on Monday, extending the sell-off seen over the two previous sessions. The major index futures are currently pointing to a sharply lower open for the markets, with the S&P 500 futures plunging by 4.5 percent.

An overseas sell-off, which saw Japan's Nikkei 225 Index record its biggest slump since "Black Monday" in October 1987, is likely to carry over on to Wall Street.

Concerns about the U.S. economy slipping into recession following last Friday's disappointing jobs report triggered the significant weakness in the overseas markets.

Gold prices traded lower on Monday as a result of profit taking activities.

Oil prices fell nearly 2 percent on Monday as fears of a U.S. recession offset supply worries stemming from mounting tensions in the Middle East. A Reuters survey showed on Friday that OPEC oil output rose in July despite production cuts by the group.

Geopolitical tensions and the risk of a wider Middle East conflict helped limit losses for oil, with reports suggesting the Benjamin Netanyahu-led government could sanction a pre-emptive strike on Iran to prevent an attack on Israeli soil.

In corporate news, A report over the weekend from The Information, has said Nvidia has informed some big customers that its Blackwell next-generation AI chip family would be delayed by at least three months.

That took the stock down nearly 13% at Monday's opening bell. But the drop moderated quickly; Nvidia shares were down about 7% by mid-morning. In a statement, the company maintained its previously stated plan to have Blackwell production ramp up in the second half of its fiscal year.

Markets

market close

FTSE 100 7,998 (-2.15%)

FTSE 250 20,249 (-2.77%)

DAX 17,352 (-1.75%)

16:31

Dow Jones 38,776 (-2.42%)

S&P 500 5,214 (-2.46%)

NASDAQ 16,326 (-2.66%)

Fixed Income

UK 10-YR YIELD 3.864

Exchange Rates

GBP/USD 1.2766

GBP/EUR 1.1635

Commodities

Gold $2,404 (-1.53%)

Brent $76.49 (-1.15%)

Important - No news or research item should be construed as a recommendation to trade. The inclusion of securities within this report does not necessarily imply their suitability for individual portfolios or situations in respect of which further advice should be sought. Information contained in this report has been compiled from sources believed to be reliable but is not warranted to be accurate or complete.