FTSE 100 live: Blue-chip snaps yesterday’s gains after Hawkish Fed call

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 notched a third consecutive record high following the release of inflation data and the Federal Reserve’s decision.  

Overnight, the S&P 500 climbed to 5,421.03, and the Nasdaq Composite rose to 17,608.44, while the Dow Jones Industrial Average dipped slightly to 38,712.21.  

Apple’s shares surged by as much as 6.3 per cent intraday, briefly reclaiming its position as the most valuable US stock ahead of Microsoft. However, Apple couldn’t maintain this lead, ending the day with a 2.9 per cent increase, while Microsoft rose by 1.5 per cent. 

London’s FTSE 100 jumped 0.8% on Wednesday, but futures point to a weak start on Thursday, declining 0.38% to 8205.0.

In Asia, stock markets showed overall gains, led by South Korea’s Kospi index, which rose by 1.4 per cent. South Korea’s decision to approve oil and gas exploration off its coast boosted sectors like construction and gas industries.  

Hong Kong’s Hang Seng index climbed by 0.8 per cent, while China’s CSI 300 remained stable. Japanese stocks showed mixed performance. 

Oil prices declined at the beginning of trading on Thursday: Brent crude futures slipped to $82.46 per barrel, down by 0.17 per cent, and US West Texas Intermediate (WTI) crude futures fell to $78.34 per barrel, a decrease of 0.2 per cent, despite both benchmarks making gains of around 0.8 per cent in the previous session.  

Gold prices also saw a decline: spot gold dropped by 0.5 per cent to $2,311.50 per ounce, and US gold futures fell by 1.2 per cent to $2,327.20 per ounce. 

The UK housing market weakened in May as hopes for a Bank of England rate cut faded, according to Thursday’s RICS survey.  

RICS reported the house price net balance at -17 (down from a revised -7 in April, marking the lowest since January) and the new buyer inquiries index at -8 (from -1 in April, the lowest since November). 

The Bank of Japan will discuss reducing bond purchases at its meeting ending Friday, aiming to trim its nearly $5 trillion balance sheet by adjusting monthly government bond purchases, as reported by Nikkei without citing sources. 

Broadcom raised its annual revenue forecast to $51 billion on strong AI demand and announced a 10-for-one stock split. Second-quarter revenue and adjusted net income exceeded expectations.  

The stock split, effective July 11 after market close, drove a 2.4 per cent rise in Broadcom’s stock to $1,495.51 on Wednesday, followed by a 12 per cent increase after hours. 

On Thursday, market attention will be focused on US producer inflation data, which will help economists predict the Fed’s preferred PCE inflation for the month.  

Additionally, new weekly unemployment claims data will be released, and investors will monitor the US Treasury auctions for 4-week bills and 30-year bonds.  

No major economic reports are expected in the UK.