|Day's Range||7,475.49 - 7,546.65|
|52 Week Range||6,536.50 - 7,790.20|
It’s a big week ahead for the markets. Earnings, economic data, Iran, trade war chatter, and the ECB are all in focus.
International investors have long shunned, or in their parlance, “underweighted” the UK, according to various surveys since 2016. Not only have many foreign investors turned their backs, they are in no mood to step back in and buy UK assets when the likelihood is high that they can only become cheaper in local currency terms.
The major U.S. stock indexes are expected to open higher based on the pre-market futures trade, however, the markets are retreating from early highs. Buyers came in early, following through to the upside after Thursday’s late rally, but gains were dampened after a New York Fed spokesperson downplayed the chances of an aggressive rate cut.
London markets rebounded on Friday led by optimism over Federal Reserve rate cuts and an oil price boost for commodity stocks.
Global stocks rose on Friday as investors firmed up bets on a U.S. interest rate cut at the end of July after a speech by a top Federal Reserve official further cemented expectations for one, fuelling appetite for risky assets and capping the dollar. European shares opened higher across the board, with the pan-European STOXX 600 index gaining 0.7% in early trade. Comments by New York Fed President John Williams on Thursday made it virtually certain, in the markets' view, that the Fed would cut interest rates by at least 25 basis points at its July 30-31 policy meeting and also revived expectations of an even deeper 50 bps reduction.
The bourse’s big names depend on international sales more than local trends. That won’t change even if Berlin embraces economic stimulus.
U.S. equity futures are pointing to solid gains across Wall Street Friday as investors react to comment from Federal Reserve officials that could signal deeper rate cuts and stronger-than-expected second quarter earnings from Microsoft that look to revive hopes for a tech-lead rally into the second half of the year.
Novartis and eBay grabbed early leads Thursday as Netflix slammed the Nasdaq, even as an analyst upgrade lifted Dow Jones stock Apple toward a buy point.
London markets retreated on Wednesday as trade talks between the U.S. and China hit a Huawei hurdle and the pound rebounded on strong U.K. retail sales.
FT subscribers can click here to receive Market Forces every day by email. Expanding equity multiples that recently propelled the S&P 500 index into record territory requires evidence of earnings growth at some point.
U.S. equity futures are pointing to a third day of declines on Wall Street Thursday as investors react to weaker-than-expected earnings in the tech and industrial sectors and signal increasing concern for the fate of U.S.-China trade talks.
London markets drifted lower as the pound continued its descent and fresh trade war fears hit the FTSE 100.
FT subscribers can click here to receive Market Forces every day by email. Reflation is what central banks and those holding risk assets want to see and that's why a rate cut looms from the Federal Reserve at the end of the month. Glancing at inflation break-evens — bond market measures of inflation expectations — does show some progress on that front.
Johnson Matthey on Wednesday lowered the profit outlook for its largest unit that makes pollution filters for cars and trucks and announced the departure of the unit's head, sending its shares down more than 3%. Shares of the FTSE 100 company was the biggest loser on London's blue-chip index. The moves follow scrutiny of Johnson Matthey's catalytic filters for trucks, which have been linked to emission issues at truckmakers Volvo and Cummins.
This month, the UN estimated that climate disasters are happening at the rate of one a week. In October, the Intergovernmental Panel on Climate Change said we had 12 years to hold global warming to 1.5C above pre-industrial levels. Aviva measured investments in its equities portfolios against the goals of the 2015 Paris agreement (limiting the rise to 2C) and found they are on track for a 3.4C rise.
U.S. equity futures edged higher, potentially lifting Wall Street to fresh record peaks again Wednesday, as investors await the first of six major tech sector earnings reports later today that could make-or-break the recent stock market rally.
The U.S. retail sales are much stronger than expected and point to economic stability, not interest rate cuts.
London markets climbed on Tuesday as the pound continued to tumble on Brexit concerns despite strong U.K. wages growth.
The U.K. labor picture remained strong in May, according to data released Tuesdayby the Office for National Statistics. Weekly earnings in the 3 months ending May rose 3.6%, the strongest rise since July 2008. The unemployment rate meanwhile stayed at 3.8%, matching the lowest level since 1974.
British fashion brand Burberry's shares jumped on Tuesday, lifting other luxury goods makers, while upbeat earnings from big Wall Street banks spurred gains for the region's lenders, driving major European markets to their highest closing levels in a week. Burberry's shares surged 14.4%, their biggest one-day gain in 7 years, as quarterly results showed demand for new designs by creative chief Riccardo Tisci picking up. Upscale retailers in Europe, including Hermes, Louis Vuitton owner LVMH and Gucci parent Kering , rose between 0.4% and 2%, helping France's CAC 40 index outperform its European peers with a 0.65% gain.
Irish building materials supplier CRH announced it will sell its European distribution business to private equity funds managed by Blackstone. The European business, which supplies roof tiles, sanitary heating and plumbing to a network of builders, will be sold for €1.64bn, including net debt. Proceeds will be used for future acquisitions and to fund the FTSE 100 company’s share buyback programme, according to the company.