- FTSE 100 closing price of 7155, -0.9%
- Ultra Electronics agrees to takeover
- Future PLC shares higher after deal for Dennis Publishing
- Oil falls following soft China, US data
- USD marginally higher
- Bitcoin firm above 200DMA
By Samuel Indyk
Investing.com – The FTSE 100 declined alongside other global equity benchmarks on Monday as global growth fears remained elevated on the back of some soft Chinese and US data.
On Friday, the Michigan Consumer Sentiment reading started the data misses, and this continued into Monday’s Asia-Pacific trading session when both Chinese industrial production and retail sales figures missed estimates. The weak data coupled with rising Covid cases in China and the region increases fears of a slowing global recovery in the second half.
“The latest spread of the delta variant will be a worry for jet fuel demand, particularly in China,” ING analysts said in an emailed research note.
Shares in Future PLC (LON:FUTR) also rallied after the company announced an agreement to buy Dennis Publishing for £300 million. Future said the deal for Dennis – owner of publications such as “The Week” and “PC Pro” – is expected to boost its earnings significantly.
The USD was marginally stronger amid the soft global data. Safe havens, such as JPY and CHF, were also strong following the data and amid the geopolitical picture in Afghanistan where the Taliban have captured the capital city, Kabul. However, the ranges were not large as traders look ahead to key releases this week, including the FOMC meeting minutes on Wednesday.
Bitcoin and other major cryptocurrencies continue to show strength after breaking above the 50% Fibonacci retracement level from the April high to July low around $47,000.
“Bitcoin finally broke $47,000 earlier today but once again it made new highs without the corresponding surge in momentum which isn’t ideal,” writes OANDA Senior Market Analyst Craig Erlam. “This loss of momentum on route to $50,000 isn’t exactly filling me with confidence.”
The recent surge in Cardano continued with the digital token moving above Tether to become the fourth largest cryptocurrency by market cap, after the developers announced the Alonzo Purple upgrade will take place next month. The upgrade will bring smart contracts to the Cardano network.
FTSE & oil decline as global data disappoints, crypto market cap above $2 trillion
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