FTSE 100 Live: London in the green despite recession being confirmed

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, U.S. stocks saw an upward trend, led by the Dow and marked by the S&P 500 reaching a new record high, driven by gains in pharmaceutical giant Merck. The major U.S. stock indexes are poised for quarterly gains, notably the S&P 500, set for its most significant first-quarter rise since 2019. 

However, Japanese stocks struggled, while Australia’s market reached a new all-time high.  

Chinese stocks showed mixed results, and currency-wise, the dollar remained strong, pausing the recent surge in gold prices. Oil prices saw a slight uptick, and Bitcoin rose in the cryptocurrency market. 

Christopher Waller of the Federal Reserve advises caution in light of disappointing inflation data, suggesting a delay in rate cuts to the future. 

Car production in Britain saw a significant 14.6 per cent rise in February, driven by domestic demand, though potential production fluctuations loom as manufacturers shift focus to electric variants. 

Australian retail sales experience a slight increase in February, partly attributed to Taylor Swift concerts, but annual growth remains subdued due to high interest rates. 

Investors await key releases including the US PCE price index, the University of Michigan’s consumer sentiment report, and weekly jobless claims data.

In the UK, the Office for National Statistics confirmed that Britain entered a shallow recession, as experts were relatively confident of a recovery.

Markets are also looking for reaction to news that Thames Water pulled a £500m cash injection, while Lloyd’s of London reported a good set of results.