FTSE 100 live: London booms amid speculation of Bank of England interest rate cut

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 stocks kicked off positively on Monday. Hong Kong’s Hang Seng index jumped 1.8 per cent, with Mainland China’s CSI 300 up by 0.2 per cent. Japan’s Kospi rose 1 per cent, and South Korea’s Kospi by 0.9 per cent. Australia’s main index also gained 0.96 per cent. 

The dollar index dipped slightly to 106.05 from last week’s peak of 106.51. Gold prices slipped 1.06 per cent to $2,366.40, stepping back from last week’s near-record high of $2,431.29. 

Crude oil prices fell as traders refocused on market fundamentals. Brent futures dropped 0.77 per cent to $86.62 a barrel amid increased US stockpiles. The May contract for US West Texas Intermediate (WTI) crude fell 0.26 per cent to $82.92, while the June contract slid 0.9 per cent to $81.57. 

Bitcoin rose three per cent to $65,704. This weekend, it underwent its “halving,” occurring roughly every four years to slow down bitcoin creation. 

Tesla slashed prices in China and Germany following US reductions, responding to lower sales and increased competition. The starting price of the Model 3 in China dropped by 14,000 yuan to 231,900 yuan, and in Germany, the rear-wheel-drive model’s price fell from 42,990 euros to 40,990 euros.  

UK home prices near record highs with a significant annual increase. Rightmove reported a 1.7 per cent surge in asking prices compared to last year, with month-on-month increases at 1.1 per cent. The average new seller price is £372,324, nearly matching the May 2023 record. 

The FTSE 100 has opened on a high this morning. The index jumped 1.1 per cent in early deals with Prudential leading the way, up 2.9 per cent, followed by Ocado up 2.6 per cent.

China kept its benchmark lending rates unchanged during Monday’s monthly fixing, as expected. The one-year loan prime rate (LPR) stayed at 3.45 per cent, while the five-year LPR remained steady at 3.95 per cent. 

This week is packed with corporate earnings reports, featuring big names like Tesla, Meta Platforms, Alphabet, and Microsoft, known as the “Magnificent Seven” for their role in driving the S&P 500. 

Boeing, facing its own challenges, will reveal its first-quarter figures on Wednesday, just ahead of Airbus.  

While economic announcements are relatively light this week, all eyes will be on Thursday’s release of US first-quarter growth figures.  

On Tuesday, the latest purchasing managers’ index reports for G7 nations and India will offer insights into global economic trends.  

The Bank of Japan is expected to maintain interest rates at its Friday meeting, but market watchers will be closely monitoring its Outlook Report.  

Additionally, Friday will see the release of the monthly US Personal Consumption Expenditures Price Index, a key inflation indicator ahead of the Fed’s April 30-May 1 meeting.