UK markets ended a tumultuous week on a slightly more upbeat tone despite the deterioration in the US-China trade talks. Given the overall bullishness of this morning’s opening, there seems to be underling optimism that the spat will be resolved without too much blood on the streets. Market sentiment is signalling something of a pause in the race for protection as global VIX scores eased back slightly from recent 2019 peaks. The CBOE VIX is currently just below 20 while the European VIX dropped 8% today but remains elevated. Today’s reversal in UK price action may have been the diminishing halo effect of the outperforming GDP and Manufacturing output figures but it was more likely due to the US markets opening sharply down on trade fears.
FTSE 100 -0.1%
The UKX reversed most of its early gains closing slightly negative on the day, AZN (-2.3%) and IMB (-2.8%) did a lot of the damage, with the latter revisiting recent multiyear lows.
FTSE 250 -+0.4%
The MCIX also lost most of its initial enthusiasm but still closed just above its 200MA and up 0.4% on the day. SXX rallied another 10% with JUST, TED and FCH all joining in the recovery game up 4-5%.
AIM All-Share +0.3%
AIM All-Share closed +0.3% to the good although most of the bigger caps did not participate with the exception of ABC up over 6%. The tech heavy techMARK rallied 0.2%.
Brent crude recovered some losses while GBP moved sideways against the greenback up 0.1% at $1.302.
A breakthrough in US -China talks seems likely to stimulate a bounce back in the markets as selling has been relatively muted and the underlying sentiment appears to remain biased to the bulls.