FTSE 100 live: London scales new heights as UK GDP data shows recession over

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.

Thursday brought gains for the US stock market, with the S&P 500 rising by 0.5 per cent to reach its highest level since April 1. The Nasdaq Composite also increased by 0.3 per cent, boosted by gains in tech stocks. 

Tesla and Nvidia declined over three days. The Russell 2000 index, focusing on smaller-cap stocks, rose by 0.9 per cent to its highest level in a month at 2,073.63 points.  

In the UK and Europe, stocks also gained amid speculation of potential monetary policy adjustments by the Bank of England. 

Ten out of eleven major sectors in the S&P rose, led by a 2.3 per cent increase in real estate. Equinix, a data centre operator, notably surged by 11.5 per cent after strong first-quarter results. 

In Asia, Japan’s Nikkei 225 jumped by 1.6 per cent, while China’s CSI300 index rose by 0.14 per cent. Hong Kong’s Hang Seng Index surged by 1.4 per cent to its highest level in eight months.  

Meanwhile, the dollar index held steady at 105.24, and spot gold rose by 0.3 per cent to $2,352.92 per ounce. 

Oil prices rose on positive economic indicators in China and ongoing Israel-Hamas tensions. Brent futures hit $84.25 per barrel, up 0.44 per cent, while US West Texas Intermediate crude rose 0.56 per cent to $79.70.  

Israeli forces reportedly bombed Rafah on Thursday, with PM Netanyahu dismissing President Biden’s warnings. This aligns with China’s April export and import rebound, signalling increased demand. 

Roblox’s stock fell by over 20 per cent after a disappointing revenue forecast, reflecting ongoing industry challenges. With its user-generated gaming platform, Roblox felt the strain of decreased in-game spending amid a challenging consumer environment. 

Major players in the gilt-edged market, known as GEMMs, are divided on when the Bank of England (BoE) may execute its initial rate cut.  

According to a compilation of views from six GEMMs by City AM, there is a split, with three expecting the cut in June and three in August. Morgan Stanley, Deutsche Bank, and HSBC favour June, while JP Morgan, Nomura, and Royal Bank of Canada lean toward August. 

This morning, it was reported the UK has powered its way out of last year’s recession, after the economy grew much faster than expected in March.

According to figures from the Office for National Statistics (ONS), the UK economy grew 0.4 per cent on a monthly basis, bringing its total growth in the first quarter to 0.6 per cent.

In IAG’s earnings, the British Airways’ owner said it is “well-positioned” for another busy summer, as first-quarter profit jumped sevenfold.

Next week, markets await April’s US PPI and CPI data to gauge inflation’s trajectory.