FTSE 100 live: London rises on back of strong tech earnings as Anglo rejects BHP deal

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.

Wall Street experienced a decline, reacting to news of slower-than-expected US economic growth and ongoing concerns about inflation. 

Overnight, the Dow Jones Industrial Average experienced a nearly 1 per cent decline, settling at 38,085.80, alongside losses in the S&P 500 and Nasdaq Composite, which dropped to 5,048.42 and 15,611.76, respectively. 

Asian markets, led by Hong Kong’s Hang Seng index, rose 1.3 per cent for the fifth consecutive day. Cnooc, a Chinese state-owned energy giant, surged 4.6 per cent. The Hang Seng index’s weekly gain reached 7.8 per cent, possibly its strongest since November 2022. 

Currency markets saw the South Korean won and Australian dollar weaken against the US dollar, while the yen hit ¥155.60 per dollar, its lowest in decades.  

US Treasury yields surged to five-month highs, with the two-year yield nearing 5 per cent and the 10-year yield stabilizing at 4.7019 per cent.  

Despite weaker US growth, the dollar slipped, hovering around 105.59 on Friday.  

In commodities, Brent crude rose 0.37 per cent to $89.34 per barrel, and US crude gained 0.33 per cent to $83.85 per barrel, while gold prices held steady at $2,331.64 per ounce. 

Microsoft surpassed Wall Street’s Q3 revenue and profit expectations, driven by the widespread use of artificial intelligence in its cloud services, causing its shares to rise over 4 per cent in after-hours trading.  

Additionally, Alphabet reported a 15 per cent revenue increase in Q1 and declared its first-ever dividend of 20 cents per share, alongside a $70 billion stock buyback program, leading to an over 11 per cent surge in its shares after hours. 

On the other hand, BHP shares fell 4 per cent due to dissatisfaction with Anglo-American’s offer. Snap surged over 30 per cent on strong earnings.  

IBM shares dropped 8 per cent after a $6.4 billion acquisition announcement and missing Q1 revenue estimates. Southwest Airlines declined nearly 7 per cent after revising Boeing delivery projections. Caterpillar shares fell 7 per cent on reduced Q2 sales forecasts.  

Meta disappointed, leading to an 11 per cent share drop, affecting market sentiment with Alphabet and Microsoft. However, Alphabet and Microsoft saw after-hours rises. Conversely, Intel’s shares fell 8 per cent on lower second-quarter forecasts. 

The Bank of Japan (BoJ) maintained the key interest rate at 0-0.10 per cent, as anticipated. This decision followed the BoJ’s first rate increase since 2007 in March, ending Japan’s negative interest rate period since 2016. 

British consumer confidence improved this month, with the GfK consumer confidence index rising from -21 in March to -19 in April. 

Later today, the US will release the March Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge.  

Also, oil giants ExxonMobil and Chevron will report their latest earnings.