FTSE 100 live: London opens higher as Fed interest rate decision to shape week
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.
Asian markets gained, mirroring the positive trend in the US, as worries eased over the Federal Reserve’s potential aggressive stance amid softer inflation.
Australia and South Korea saw stock prices rise at the opening, while Japan’s market was closed for a holiday. US futures showed a slight increase after the S&P 500 rose one per cent on Friday.
The Japanese yen weakened further against the dollar, breaking below the 160 level to reach its lowest point since April 1990, while Hong Kong’s stock market maintained its upward momentum, extending a week-long rally.
In Hong Kong, stocks continued to climb following reassurances from Chinese authorities about preserving the city’s global financial status. The Hang Seng index surged by 1.40 per cent, with AIA and Longfor Group leading gains, both rising over 6.0 per cent.
Meanwhile, China’s CSI300 index edged up by 1.16 per cent.
The dollar index held steady at 105.95, poised for a monthly gain of 1.4 per cent. Gold prices dipped by 0.46 per cent to $2,327.12 per ounce.
Oil prices in Asia fell on Monday, reversing gains from Friday, as peace talks in Cairo between Israel and Hamas eased Middle East conflict fears.
Brent crude futures dropped by nearly one per cent to $88.71 a barrel, while West Texas Intermediate (WTI) futures slipped about one per cent to $83.16 a barrel.
A Hamas representative told Reuters that the organisation’s delegation is set to meet in Cairo on Monday for ceasefire discussions. These talks come amidst worries about potential Israeli military actions in the southern city of Rafah.
CEO pay in the S&P 500 jumped by nine per cent to a median of $15.7 million by April 15, widening the gap between American and British corporate leaders.
Data released on Saturday showed China’s industrial profits dropped in March, slowing the quarter’s growth compared to earlier months, and sparking concerns about the country’s economic recovery.
This week’s economic focus centres on the US Federal Reserve’s interest rate decision scheduled for Wednesday. Expectations suggest the Fed will maintain its current course due to slower-than-expected inflation decline.
All eyes will be on Fed Chair Jay Powell’s post-meeting press conference for insights.
Additionally, there will be releases of fresh US employment figures on Friday and international comparisons of manufacturing purchasing managers’ index figures. Japan and the EU will provide updates on industrial production, employment, and preliminary first-quarter GDP estimates.
Company earnings reports will include significant announcements from Amazon.com, Apple, HSBC, Samsung, and Shell.
Attention will also be on annual meetings, particularly that of takeover target Anglo American on Tuesday.
In the UK, the focus shifts to local and mayoral elections in England and Wales on Thursday, determining leadership in London, Birmingham, and Manchester.
London’s premier bluechip index opened around 50 points higher, after another record-breaking day on Friday. It closed on 8,078.86 after reaching 8,146.79 at one point at the end of the week.
