FTSE 100 live: British stocks gear up for a gloomy start to the week amid weak global cues
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.
Trading activity in Asia was subdued due to public holidays in Australia, China, Hong Kong, and Taiwan. Meanwhile, Japan’s Nikkei N225 index rose by 0.42 per cent, supported by a weaker yen.
The euro slipped as French President Macron’s call for a surprise election rattled markets, with both stock and bond futures tumbling. The currency dipped 0.3 per cent to $1.0764 and hit a 21-month low against the British pound at 84.60 pence.
EuroSTOXX 50 futures dropped by 0.4 per cent, while French bond futures extended their recent decline.
The FTSE 100 fell 0.5 per cent on Friday, capping its fourth straight weekly loss, echoing a trend from 2020. Monday’s futures indicate a bearish start, with FTSE 100 futures down 0.75 per cent to 8200.5.
In the US, S&P 500 and Nasdaq futures both eased by around 0.03 per cent, while the dollar strengthened.
In commodities, oil prices rebounded, reversing earlier losses due to the stronger dollar. Brent crude futures edged up 0.13 per cent to $79.72 a barrel, and US West Texas Intermediate crude futures rose 0.16 per cent to $75.65 a barrel.
Spot gold increased by 0.30 per cent to $2,299.15 an ounce.
UK employers showed the smallest decline in permanent hiring in over a year in May, signalling a potential job market turnaround. Temporary staff billings also dropped less since January. Pay rates for permanent staff slightly slowed from April’s high, and job vacancies declined at their slowest pace in seven months. This is closely monitored by the Bank of England for clues about rate cuts.
Revised data shows Japan’s economy contracted by 1.8 per cent in the January-March period, better than the initially reported 2 per cent decline. The uptick, driven by higher capital spending and inventory data, provides modest backing for the central bank’s plan to raise interest rates this year.
This week holds crucial interest rate decisions. The US Federal Reserve is expected to maintain rates at 5.25 per cent to 5.5 per cent, and the Bank of Japan is likely to keep its rates at 0 per cent to 0.1 per cent.
US inflation data, due before the Fed’s announcement, could influence future rate decisions amid signs of economic slowdown.
In the UK, Tuesday’s job report will indicate if wage pressures are easing enough to suggest a potential rate cut by the Bank of England.
Wednesday’s GDP data is expected to show a slowdown after strong first-quarter growth.
Tech highlights include Apple’s Worldwide Developers Conference and the debut of Raspberry Pi on the London market, offering a lift to the struggling exchange.
Tesla’s shareholder meeting on Thursday will feature key votes on Elon Musk’s compensation, relocation plans, and director elections, with opposition from proxy advisory firms already voiced.
