|Day's Range||7,020.22 - 7,125.90|
|52 Week Range||6,536.50 - 7,727.50|
(Bloomberg) -- The London Stock Exchange Group Plc suffered its longest glitch in 8 years, just weeks after the three-century old exchange unveiled plans to become a data and trading powerhouse.Shares in the key FTSE 100 and the FTSE 250 indexes resumed trading at about 9:40 a.m. after an outage that lasted about an hour and 40 minutes, according to a statement. Companies in those benchmarks include HSBC Holdings Plc, BP Plc, and AstraZeneca Plc. The LSE also suffered a one-hour trading delay in June 2018 caused by a software issue.Friday’s glitch comes as LSE agreed to snap up Refinitiv just weeks ago in a $27 billion blockbuster deal, betting on a future dominated by data. It also comes as investors are hit by rocky markets. The U.K.’s looming departure from the European Union, the U.S.-China trade dispute and concern about a recession are all causing price swings.The London snag also meant that traders who deal in related securities and index trackers were flying blind without prices for the underlying stocks.“The impact to us is quite large as we are FTSE index traders and the futures are open,” said John Moore, a trader at Berkeley Capital Wealth Management. Without seeing the underlying stock prices, it was difficult to know whether the futures price was “a true reflection of fair value on the FTSE.”The LSE blamed the outage on a “technical software issue,” according to a statement.Other global market exchanges have been hit with technical woes in the past few months. In the U.S., a technical error at exchange operator CME Group Inc. in February this year caused a trading halt of about three hours, preventing the buying and selling of contracts tied to U.S. Treasuries, stock futures and commodities.Apple Inc., Google parent Alphabet Inc. and other major stocks had a bizarre last few minutes of trading this week, as data glitches hampered U.S. markets for a second day.(Adds Refinitiv deal in third paragraph.)To contact the reporters on this story: Jan-Patrick Barnert in Frankfurt at firstname.lastname@example.org;Harry Wilson in London at email@example.comTo contact the editors responsible for this story: Ambereen Choudhury at firstname.lastname@example.org, Keith CampbellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Germany's right-left coalition government would be prepared to ditch its balanced budget rule and take on new debt to counter a possible recession, Der Spiegel magazine reported on Friday. Germany's DAX , pressured of late by fears of a slide into recession as trade tensions between the United States and China flare up, rose 1.3%, and German bonds came off lows after the report. "The market is appearing to have some confidence that Germany will actually conduct some amount of fiscal stimulus while being on the brink of recession," said Yousef Abbasi, global market strategist at INTL FCStone Financial Inc in New York.
The London Stock Exchange suffered a "technical software issue", which postponed the opening of trading until 0840 GMT, a spokeswoman said in an email. Traders were frustrated by the latest outage coming during a hectic week on global financial markets, hit by worries about a U.S. recession and the U.S.-China trade spat. A large number of market participants were also away on holiday, which may have limited the impact of the failure.
China on Thursday vowed to counter the latest U.S. tariffs on $300 billion of Chinese goods but called on Washington to meet it halfway on a potential trade deal, as President Donald Trump said any pact would have to be on the United States' terms. Trump said on Wednesday he would strike a trade deal with China only after China found a humane resolution to weeks of protests in Hong Kong.
The FTSE 100 index shed 1.1%, lagging its European peers, with losses led by oil majors and financial stocks. While the FTSE 250 index earlier hit a near seven-month low, the index clawed back some of the early losses to close 0.5% lower on the back of a rise in sterling. Gains for the local currency was brought on by news that the opposition Labour Party was mounting a bid to bring down Prime Minister Boris Johnson and stop him taking Britain out of the EU without a deal.
Global stocks rebound as trade tensions thaw but the relief rally fizzled when the U.S. yield curve went into a full inversion. Recession fears are heightened around the world.
The FTSE 100 index , already under pressure from weak Chinese economic data, ended down 1.4%, with losses across all but one sector. "It's quite possible that we see a recession towards the second half of next year at the earliest.
The FTSE 100 index ended 0.4% lower, while the midcap index dropped 0.9% as concerns about the health of the British economy, the world's fifth-largest, lingered after data on Friday showed a surprise downturn in the last quarter. "Many traders / fund managers are on holiday and given it is a sideways-to-down day, the less liquid areas such as the (FTSE) 250 vs the FTSE 100 will tend to underperform," Raymond James analyst Chris Bailey pointed out. Both the UK indexes had earlier jumped about 0.6% on the back of gains in China, but the FTSE 100's Asia-exposed financials including HSBC took a turn for the worse after China said the anti-government protests in Hong Kong had begun to show "sprouts of terrorism".
Sterling skidded again on Friday, hitting its lowest in more than two years, after an unexpected second quarter contraction in the economy alarmed investors already fretting that Britain is headed for a no-deal Brexit. The pound, which has lost 3.7% of its value against the dollar since arch-Brexiteer Prime Minister Boris Johnson's arrival in office in late July, sank to $1.2056, the weakest it has been since January 2017, and was last down by 0.5% at $1.2072. Britain's economy shrank at a quarterly rate of 0.2%, the first contraction since 2012 and below all forecasts in a Reuters poll.
The global markets are mixed as trade war conditions escalate and economic data is stronger than expected.
Sterling fell to a one-week low on Friday and British stocks sold off after the UK economy unexpectedly contracted in the second quarter. London's export-heavy blue chip FTSE 100 index briefly pared its earlier losses as sterling slumped after the data. JP Morgan's UK domestic plays index that tracks about 30 UK stocks that make all or most of their revenue at home fell into negative territory after the data.
The FTSE 100 gave up 0.4% to end its worst week in three months with a 2% drop. The domestically-focused FTSE 250 handed back earlier gains to end 0.2% lower. Miners were hit as President Donald Trump said he was not ready to make a trade deal with China, the world's largest metals consumer.
The major U.S. stock indexes are expected to open the cash market higher, based on the pre-market futures trade. Investors are shifting toward “risk-on” sentiment because of a stable yuan and firming U.S. Treasury yields. These two markets will influence prices all session.
The FTSE 100 , which fell almost 5% in the days after President Donald Trump said he would slap tariffs on more Chinese imports last week, recovered for the second session running and surged 1.2%. The more domestically focussed mid-cap index rose 1% on its best day in nearly three months. "The trade spat is far from over, but while the rhetoric and the actions have been dialled down, traders are swooping in snapping up relatively cheap stocks," CMC Markets analyst David Madden said.
The mid-cap FTSE 250 rose 0.5%, helped by a post-earnings jump in Ultra Electronic and infrastructure products maker Hill & Smith . The FTSE 100 has tumbled more than 5% in just a week, after having gained in six of the first seven months of the year, following President Donald Trump's threat to slap a 10% tariff on a further $300 billion in Chinese imports next month. It had surged as much as 0.9% on Wednesday, but gave up a lot of those gains as a drop in yields spurred a global rally in safe-haven, fixed income assets and led investors to pile into bonds.
"The bounce that we saw in the morning was not necessarily well founded so therefore it is duly fading as we get to the close," said City Index analyst Ken Odeluga. The brief bounce after a two-day sell-off was spurred by China's central bank fixing the yuan at a slightly stronger rate on Tuesday, allaying fears that Beijing would use its currency as the new front in its trade battle with the United States. "This sends a signal that contrary to initial perceptions we may have got from China, there is not necessarily a desire to see the yuan slump out of control even if that may have some benefits that offset the negatives with respect to the trade conflict," Odeluga said.
Aug.16 -- The FTSE 100 and the FTSE 250 have reopened following other European indices higher. This comes after a delay of one hour and 40 minutes because of a glitch at the London Stock Exchange. Bloomberg’s Jan-Patrick Barnert reports on “Bloomberg Surveillance.”