FTSE 100 live: London makes more strides before Bank of England rate decision

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 saw gains across major indices. The Dow Jones rose by 0.46 per cent to 38,852.27 points, while the S&P 500 and Nasdaq Composite surged by 1.03 per cent and 1.19 per cent, respectively. 

Most S&P 500 sectors closed positively, notably the energy sector, boosted partly by the increase in US natural gas futures. 

Chip manufacturers, including Arm Holdings, Micron Technology, Advanced Micro Devices, and Super Micro Computer, surged. Paramount Global rose after ending exclusive talks with Skydance Media.  

However, Tyson Foods’ stocks fell despite exceeding profit expectations due to consumer inflation concerns. 

In Asia, South Korea’s Kospi rose by 1.8 per cent, while Hong Kong’s Hang Seng index dipped by 0.2 per cent after consecutive gains. Japan’s yen fluctuated, briefly dropping below ¥154 per dollar before stabilizing at ¥154.45. 

US government bond movements stayed quiet, with the two-year yield ticking up by 0.03 per centage points to 4.84 per cent as bond prices dipped.  

In commodities, Brent crude futures edged up by 0.26 per cent to $83.54 per barrel amid Middle East tensions, while gold prices held steady at $2,325 per ounce. 

The Reserve Bank of Australia keeps the cash rate steady at 4.35 per cent, as predicted. While it raised short-term inflation forecasts, it remains confident that both headline and core inflation will return to target by late 2025. 

Japan’s top currency official, Masato Kanda, highlighted Tokyo’s readiness to act against disruptive FX market movements, underscoring the country’s commitment to supporting the fragile yen. 

British consumer spending in April remained cautious despite Easter’s influence. Barclays reported a modest 1.6 per cent growth in spending on its payment cards, the slowest since February 2021. Adjusted for inflation, this represented a decline from March’s 1.9 per cent growth, Reuters reported. 

The British Retail Consortium also observed a significant drop in retail sales values, with April sales falling by 4.0 per cent year-on-year. Overall, sales for March and April combined showed only a slight 0.2 per cent increase compared to last year. 

UK market observers anticipate a relatively quiet week ahead in the US, but significant events remain on the horizon. Key highlights include the Bank of England’s update, UK GDP growth figures, and US consumer sentiment data.  

London, Tokyo, and Seoul markets start the week later due to holidays, but corporate news is still abundant, with media giants like Disney, Fox, Warner Bros Discovery, and ITV set to report earnings, along with BP.