FTSE 100 live: Blue-chip gains ahead of expected ECB rate cut
The daily London market update: Market moving news from the FTSE 100 and around the world from City A.M.
The latest updates on the FTSE 100 and London’s financial markets from City A.M.’s newsroom in the heart of the City of London.
The US stock market experienced significant gains, with both the S&P 500 and Nasdaq Composite reaching record highs thanks to strong performances by technology companies.
Overnight, the Dow inched up to 38,807.33; the S&P 500 climbed to 5,354.03, and the Nasdaq jumped to 17,187.91. Tech led gains, while consumer staples dipped.
Hewlett Packard Enterprise surged 10.7 per cent on a strong AI server demand forecast, while Dollar Tree fell 4.9 per cent on a bleak profit outlook, considering options for Family Dollar.
In Asia, Japan’s Nikkei 225 rose by 1 per cent, China’s blue-chip CSI300 index increased by 0.38 per cent, and Hong Kong’s Hang Seng index went up by 0.81 per cent.
The FTSE 100 closed higher on growing bets for a Fed rate cut. Futures point to a positive start for Thursday, with EUROSTOXX 50 up 1.66 per cent, and FTSE 100 up 0.29 per cent to 8286.5. S&P 500 futures rose 0.08 per cent, Nasdaq futures by 0.14 per cent.
Brent crude futures were up 0.48 per cent to $78.79/barrel, and WTI crude futures climbed 0.66 per cent to $74.55/barrel.
Nvidia, a chipmaker, surged past a $3 trillion market value, surpassing Apple as the world’s second most valuable company. Its shares rose over 5 per cent, closing at $1,224.40. Nvidia plans a ten-for-one stock split on June 7 to enhance accessibility, marking a shift in Silicon Valley’s landscape.
Lululemon’s shares surged 10 per cent after-hours on strong full-year projections, beating forecasts. First-quarter results also outperformed, with revenue up 10.4 per cent and earnings per share up 11.4 per cent.
After Canada led the way by lowering interest rates, all eyes shifted to the ECB, expected to follow suit on Thursday. It was anticipated to cut the deposit rate to 3.75 per cent from 4.0 per cent, the first such move since 2019.
Economic updates on Thursday include construction PMI data from the UK, Eurozone, and Germany.
After the ECB announcement, attention turns to the May nonfarm payroll report, scheduled for release on Friday, with economists expecting a job increase of 185,000.
