FTSE 100 live: Blue-chip index claws back some losses as it enters green

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.

US stocks fell amid rising Treasury yields and diminishing expectations of a rate cut by the US Federal Reserve this year. 

Overnight, both the S&P 500 and Nasdaq Composite fell by 0.74 per cent to 5,266.95 and 0.58 per cent to 16,920.58, respectively. The Dow Jones Industrial Average also declined by 1.06 per cent to 38,441.54. Nasdaq retreated after reaching 17,000 for the first time, while the Russell 2000 index dropped by 1.5 per cent. 

Investors are bracing for another tough session, with FTSE 100 futures indicating a 9-point drop following a 1.29 per cent decline yesterday. 

Asian markets and currencies mirrored the US downturn on Thursday after a weak Treasury auction triggered a bond sell-off. Japan’s Topix index fell 0.8 per cent, and the Nikkei 225 dropped 1.7 per cent due to exporter concerns.  

Australia and South Korea also saw stock declines. Despite positive GDP forecasts by the IMF, China’s CSI300 index eased by 0.25 per cent, while Hong Kong’s Hang Seng Index edged up 0.17 per cent. 

Asian currencies mostly weakened against the dollar, with the Indonesian rupiah and South Korean won leading the declines, dropping 0.4 per cent and 0.3 per cent respectively. The yen remained stable at around ¥157.40 in early trading. 

The US dollar index rose 0.5 per cent against major currencies on speculation of prolonged high interest rates by the Federal Reserve. US equity futures dipped in early Asian trading following a drop in the S&P 500 below 5,300 on Wednesday, and the Nasdaq 100’s worst performance since May 1. 

On Wednesday, a disappointing US Treasury auction triggered a global bond sell-off, pushing the benchmark 10-year Treasury yield to its highest level since May, at 4.64 per cent. 

In commodities, oil prices rose slightly, rebounding from Wednesday’s dip on concerns over weak US gasoline demand and potential extended high interest rates. Brent crude held at $83.60 per barrel, while US crude edged up to $79.25. Spot gold fell to $2,334.15 per ounce. 

Post-market, Salesforce shares plummeted over 15 per cent due to weak results and a below-expectation second-quarter revenue forecast. Meanwhile, Marathon Oil shares surged 8.4 per cent after ConocoPhillips announced an all-stock acquisition deal valued at over $15 billion.  

However, ConocoPhillips shares dropped 3.1 per cent, contributing to a 1.8 per cent decline in the energy sector. Airline stocks, led by American Airlines, saw a significant 13.5 per cent drop after revising down its second-quarter profit forecast.  

On a positive note, Dick’s Sporting Goods rose 15.9 per cent after raising its annual sales and profit forecasts, while Abercrombie & Fitch surged 24.3 per cent due to an improved annual sales growth outlook. 

British car production fell by 7 per cent in April, the second monthly decline. According to the Society of Motor Manufacturers and Traders (SMMT), 61,820 cars were produced, down from 66,527 last year. Electrified vehicles accounted for 40.5 per cent of total production, with EVs showing a slight 0.1 per cent increase. 

Thursday will be focused on the US with key economic reports and speeches. Starting with the second estimate of first-quarter GDP growth, followed by weekly jobless claims and April’s pending home sales.  

In the eurozone, the European Commission will release the May economic sentiment index.  

While the UK lacks major economic reports, attention will be on earnings from Auto Trader and British American Tobacco. In the US, investors await earnings reports from Costco and Marvell.