Escalating trade tensions between the US and China catalysed more seasonal selling today as all stock indices turned red on the day and fear gauges spiked. US and UK VIX scores increased around 30% today to their highest levels in 2019. That gold finally caught a slight bid up 1% may be a signal of some safe haven plays in the face of increasing volatility. UK markets held up better than all of their peers as UKX dropped just 0.5% buoyed by a weakening pound and stronger crude which lifted the oilers. European bourse were down 1-1.5% while the US indices were down over 2% at pixel.
In sectors Tobacco, Beverages, Personal Goods and utilities all rallied today as classic safety plays attracted capital flows while Mining, Ind Metals and Construction took a pummelling.
FTSE 100 Stars ‘n Dogs (-0.5%)
CNA rallied over 3% while NG. RDSB, CPG, BATS and INF were up over 1%. In a long list of dogs, TUI, VOD, EVR and ITV all lost over 5%
FTSE 250 Stars ‘n Dogs (-1.3%)
The mid cap 250 was lacking in much green today with just 40 of the names closing in the green : HFG and FCH were the best performers up 2%. In the long tail of red, SXX gave back 10% of tis recent gains as profits were booked. MTRO took another 10% off its value on a placing announcement to shore up its loan book: STOB -10% joined the double digit losses : MAN, CINE, ROR and AJB all lost 5% or more
AIM All-Share (-0.6%)
Many of the AIM big caps were in the red for the day with HCM down another 8%: BOO down over 4% with ASC and FEVR off 2.5%. BUR rallied 2.5% off an oversold rally having fallen over 25% since mid April ’19. HUR rallied 8% on news of spudding and first oil due.
Today’s selling puts more pressure on the 2019 rally as the UKX closes below its 200MA which remains in a downward trend: the FTSE 250 and AIM -All Share are short to medium term bearish. Today’s price action in the TechMARK suggest more selling to come as the tech heavy index sank 1.3% but remain north of its 200MA. The TechMARK has led all of the indices in recent rallies and sell-offs, a check and bounce of its 200 MA may be on the cards and will reveal more on the longer term health of the current rally