FTSE 100 live: Markets rise as Bank of England holds rates and gives June steer

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.

Overnight, US stock markets saw mixed performance, with the Dow Jones Industrial Average up by 0.44 per cent at 39,056.39, the S&P 500 unchanged at 5,187.67, and the Nasdaq Composite down by 0.18 per cent at 16,302.76. The smaller-company-focused Russell 2000 declined by 0.5 per cent to 2,055.135. 

Among sectors, real estate, materials, and consumer discretionary sectors performed poorly. 

Intel’s stock fell 2.2 per cent due to revoked export licenses for China. Tripadvisor dropped 28.7 per cent after announcing no sale plans and unexpected losses. Lyft rose 7.1 per cent on strong quarterly projections.  

Other major stocks like Nvidia, Amazon, and Alphabet saw minor declines, despite a slight rise in the 10-year US Treasury yield. 

Asian markets remained subdued, with speculation on currency intervention in Japan affecting yen stability. Chinese stocks rose 0.6 per cent, boosting Hong Kong’s Hang Seng index by 0.7 per cent, driven by technology and property sectors.  

In commodities, oil and gold prices saw slight increases, with Brent futures up 0.2 per cent to $83.76 a barrel, US crude up 0.3 per cent to $79.24 a barrel, and gold up 0.1 per cent to $2,311.23 per ounce. 

China’s exports rose modestly in dollar terms in April as the government aims to revive manufacturing and the economy. Last month, exports increased by 1.5 per cent, rebounding from March’s 7.5 per cent decline due to lower prices.  

Analysts expected a slight increase, with estimates around 1.5 per cent to 1.3 per cent. Additionally, China’s imports surged by 8.4 per cent in April, surpassing expectations of under 5 per cent. 

In March, Japan’s real wages dropped by 2.5 per cent compared to the previous year due to rising inflation. Since April 2022, inflation has consistently exceeded the Bank of Japan’s 2 per cent target. Despite a recent rate hike, the cost of living crisis persists, impacting the ruling party’s approval ratings.  

During the April policy meeting, Bank of Japan members advocated for gradual interest rate increases to prevent inflation from exceeding targets, a summary of opinions at the meeting showed. 

British property surveyors expect increased sales despite high borrowing costs. The number of homes for sale rose sharply last month, maintaining RICS’s house price balance at -5 in April, unchanged from March.  

Transaction volumes surged, with mortgage approvals reaching an 18-month high of 20 per cent in March. RICS reported its highest overall sales balance since May 2021, although new buyer inquiries dropped below zero for the first time in four months. 

Today, the Bank of England (BoE) decided it would hold interest rates again, amid speculation about a potential June rate cut.

BoE’s Dave Ramsden and Swati Dinghra were two members of the Monetary Policy Committee pushing for a cut.  

Among gilt-edged market makers (GEMMs), opinions diverge on the timing of the next BoE rate cut, with eight predicting June and seven predicting August. 

Other significant events for the session include the release of weekly US jobless claims figures and the US Treasury’s 30-year debt auction. 

Investors will also focus on earnings reports from media giants Warner Bros Discovery and UK-based ITV, alongside UK-based private equity firm 3i Group’s 2024 results unveiling.