FTSE 100 live: London markets flashing red after wage data

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.

Major US indices, including the S&P 500 and Nasdaq, experienced declines of 1.2 per cent and 1.8 per cent respectively, with tech giants suffering notable losses.  

Even smaller companies in the Russell 2000 fell by 1.4 per cent, while the Dow Jones Industrial Average dropped by 0.66 per cent. 

Apple and Tesla faced setbacks, with Apple’s smartphone shipments declining by 10 per cent in Q1 2024 and Tesla announcing layoffs of over 10 per cent of its workforce.  

However, Goldman Sachs bucked the trend, witnessing a more than three per cent increase in its shares after reporting strong profits driven by robust performance in underwriting, deals, and bond trading in Q1. 

In Asia, markets mirrored the US downturn, with Japan’s Nikkei N225 down by 1.6 per cent and other benchmarks following suit.  

The dollar continued its ascent to five-month highs, while gold surged by 1.7 per cent to $2,383.19 per ounce, possibly reaching a new record high.  

Commodities, including US and Brent crude, saw gains amid escalating Middle East tensions, while spot gold edged up by 0.1 per cent to $2,385.88 per ounce.” 

The Japanese yen tumbled below the ¥154 mark against the dollar for the first time since 1990. Despite assurances of intervention from Japanese officials, the yen saw only a marginal recovery. 

China’s economy showcased resilience in Q1, with GDP soaring by 5.3 per cent year-on-year, outpacing projections.  

However, the world’s No.2 economy witnessed a sharp decline in new home prices in March, raising concerns despite government efforts. Property investment also saw a significant drop, indicating ongoing challenges in the real estate sector. 

Israel braces for a response to Iran’s direct attack, with global calls for restraint amidst escalating tensions. Prime Minister Netanyahu convenes urgent meetings while Israel’s military chief confirms retaliation plans.  

Meanwhile, US Secretary of State Blinken urges Israel to avoid further escalation. 

Earnings season continues with a focus on companies like Bank of America, Blackstone, and American Express. Additionally, attention shifts to UK employment data and a speech by Federal Reserve Chair Jerome Powell. 

Today, UnitedHealth, Bank of America, and Johnson & Johnson earnings results will also be in focus, adding to the anticipation surrounding this earnings season.

In the UK, Brits woke up to hotter-than-expected wage growth and unemployment grew also. Annual pay growth including bonuses averaged 5.6 per cent between December and February, according to figures from the Office for National Statistics (ONS), unchanged from 5.6 per cent last month and slightly ahead of expectations.