FTSE 100 live: Britain’s blue-chip index set to extend record run

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.

Overnight, the US stock market experienced a surge, with all three major indexes reaching new intraday highs. Technology stocks were the primary drivers behind this rise, propelling the market forward.  

Particularly noteworthy was the Dow Jones Industrial Average’s advancement towards the significant 40,000 milestone. It rose by 0.88 per cent, nearing 39,908.00 points, while the S&P 500 climbed by 1.17 per cent to reach 5,308.15 points.  

Similarly, the tech-heavy Nasdaq Composite index saw a notable increase of 1.40 per cent, closing at 16,742.39 points, marking its second consecutive record close. 

The Russell 2000, which focuses on smaller companies, reached its highest level since late March, climbing by 1.1 per cent. 

Some standout stocks include Nvidia, up 3.6 per cent, Microsoft and Apple both gaining 1.7 per cent and 1.2 per cent respectively. Super Micro Computer Inc. surged by 15.8 per cent, seen as a promising investment in the growing AI sector. 

In Asia, Hong Kong and Australia’s markets rose, while Japan’s market started strong but ended with a smaller gain due to earnings concerns and currency fluctuations.  

Rumours of China considering buying properties for public housing boosted Hong Kong’s Hang Seng Mainland Properties index by 4.4 per cent. 

The dollar weakened slightly against major currencies, hitting a five-week low. In commodities, gold prices continued to rise, nearing their previous record high, while oil prices also saw gains. 

Japan’s economy shrank 2 per cent on an annualized basis in Q1 due to slow household spending and decreased exports. Preliminary data shows a 0.5 per cent quarterly GDP drop. Weak domestic demand and declining wages present challenges for the Bank of Japan, especially with pressure to raise rates amid yen depreciation. 

Australia’s April employment data defied expectations with a strong increase, but the unemployment rate also rose, suggesting a gradual labour market easing. Employment surged by 38,500, exceeding forecasts, but full-time employment dropped by 6,100.  

The unemployment rate increased to 4.1 per cent, surpassing expectations, while the participation rate edged up to 66.7 per cent, with no change in total hours worked. 

Anglo American halts global hiring to streamline operations. The company plans to focus on copper, key for the energy transition while selling less profitable assets like coal, nickel, diamonds, and platinum, Reuters reported. 

This move aims to fend off a $43 billion bid from Australia’s BHP, the world’s largest mining company. Despite rejecting BHP’s offers twice, Anglo believes they undervalue the company. 

Investors are watching key US economic reports like weekly jobless claims and the Philadelphia Fed’s May manufacturing index. Data for April on housing starts, import prices, and industrial production are also on the radar.  

Meanwhile, four Federal Reserve officials and the Bank of England’s monetary policy committee external member Megan Greene also speaks at Make UK.  

In the UK and Europe, no major economic releases are expected.  

BT Group and Walmart are set to provide earnings updates, with Walmart’s quarterly report awaited for insights into consumer spending trends despite its shares declining for the third consecutive day.