FTSE 100 live: Blue-chip index likely to gain for third straight day

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.

Asian stock markets rose on Monday as investors anticipated potential interest rate cuts in Europe and Canada, aligning with the global trend of monetary policy easing. 

Chinese blue-chip stocks in the CSI300 index rose by 0.3 per cent. Japan’s Nikkei N225 advanced 1.1 per cent, recovering from recent lows, while South Korea’s KS11 climbed 1.8 per cent.  

In India, markets rally, awaiting Tuesday’s election results to see if Prime Minister Narendra Modi’s alliance will increase its parliamentary majority, which could pave the way for more economic reforms. India’s nifty 50 index hits record high, up 3.58 per cent at 23,337.85. 

European markets showed positive momentum with EUROSTOXX 50 futures up 0.9 per cent and FTSE 100 futures rising 0.74 per cent. In the US, S&P 500 futures edged up 0.2 per cent, and Nasdaq futures added 0.1 per cent. 

Gold held steady at $2,330 an ounce, continuing its four-month uptrend, bolstered by central bank and Chinese buying. 

Oil prices bounced back on Monday after an early decline, following OPEC+’s decision on Sunday to extend most oil output cuts until 2025, with some reductions being reversed starting in October 2024. Brent crude increased by 38 cents to $81.49 a barrel, and US crude went up by 39 cents to $77.38 a barrel. 

China’s manufacturing sector saw significant growth in May, hitting its highest level in nearly two years, according to a recent private sector survey. The Caixin/S&P Global manufacturing PMI rose to 51.7, surpassing analysts’ expectations and marking the sector’s fastest expansion since June 2022. 

Shein is set to secretly file for a London Stock Exchange listing in the next few days, potentially leading to a major UK IPO. The move follows obstacles in its New York IPO plans, with heightened tensions between Beijing and Washington cited as a factor. 

OPEC+ decided to extend significant oil production cuts until 2025 to stabilize the market amidst slow demand growth, with reductions of 3.66 million barrels per day (bpd) until 2025 and 2.2 million bpd until September 2024, followed by a gradual phase-out. 

Key economic events this week include the European Central Bank’s interest rate decision, the Bank of Canada’s likely rate cut, and crucial data releases such as US employment numbers and EU GDP data. The US jobs report is especially important ahead of the Federal Reserve’s meeting next week. 

PMI data from various countries will provide global comparisons. Inditex, owner of Zara, will report earnings in the retail sector.  

In India, the results of the world’s largest election will be declared on Tuesday, likely resulting in Narendra Modi winning a third term as Prime Minister, as most exit polls have shown.