FTSE 100 live: London starts in the green amid increasing bets on rate cut
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.
US stock markets saw a mixed session with the S&P 500 rising by 0.13 per cent to 5,187.70 points, led by gains in most sectors except consumer cyclicals.
However, the Nasdaq Composite dipped by 0.10 per cent to 16,332.56, and the Dow Jones Industrial Average edged up slightly by 0.08 per cent to 38,884.26. The small-cap-focused Russell 2000 gained 0.2 per cent.
Alphabet and Meta Platforms stocks surged by 1.9 per cent and 0.6 per cent, respectively, bolstering the market. However, Nvidia faced a 1.7 per cent decline amid reports of Apple’s potential AI chip market entry.
Apple’s M4 chip launch boosted stocks by 0.4 per cent, though it was for an iPad Pro, not a laptop. Tesla’s stock fell 3.8 per cent due to lower China EV sales.
US bond yields fluctuated, with the 10-year Treasury yield dipping to 4.46 per cent and the two-year yield rising to 4.83 per cent. The yen depreciated by 0.3 per cent against the dollar.
Asian markets saw mixed movements, with Japan’s Nikkei 225 down by 0.96 per cent and Hong Kong’s Hang Seng up by 0.33 per cent. Mainland China’s CSI 300 fell by 0.4 per cent, while Australia’s S&P/ASX 200 rose by 0.1 per cent.
Oil prices fell due to increased US stockpiles and hopes for a Gaza ceasefire, with Brent crude dropping to $82.76 a barrel and US West Texas Intermediate falling to $78.02.
Gold held steady at around $2,316.53 per ounce, showing a slight 0.13 per cent increase.
Reddit’s first quarterly earnings since going public in March exceeded analysts’ expectations, sparking a 16 per cent surge in after-hours trading. The social media platform forecasted revenue between $240 million and $255 million for Q2 2024, surpassing consensus forecasts.
TikTok and ByteDance filed a lawsuit in a US federal court against a law signed by President Joe Biden, which demands the sale or ban of TikTok. The lawsuit argues constitutional violations, notably First Amendment free speech protection. ByteDance has until January 19 to comply with the law, signed on April 24.
BOJ Governor Kazuo Ueda warns of yen’s inflation impact, hints at possible monetary policy measures. He stresses concern over recent declines and clarifies BOJ’s indirect intervention stance, emphasizing careful assessment of economic impacts.
Investors watch for Bank of England updates, UK GDP growth figures, and US consumer sentiment data. Insight into the Canadian job market is also awaited.
The Bank of England’s decision on the Bank Rate, which is expected to remain unchanged at its upcoming meeting, will be closely watched for any indications regarding monetary policy.
This week, media companies, including heavyweights like Fox, Warner Bros Discovery, and UK-based ITV, will be in focus as they are set to report their earnings.
US consumer price data, scheduled for release in a week’s time, will also be closely monitored.
