Here are the comprehensive updates on the FTSE 100 and London’s financial markets from City A.M.’s newsroom located in the bustling heart of the City of London.
Starting with the global stock market, the Dow and S&P 500 indices saw minor declines, contrasting with the Nasdaq Composite, which recorded slight gains.
Moving to Asia, positive momentum was observed in Japan’s Nikkei index and Hong Kong’s Hang Seng index, with notable gains led by Xiaomi shares. In parallel, currency markets witnessed the US dollar strengthening against a basket of currencies, while spot gold prices remained steady after reaching an all-time high on Monday.
The surge in oil prices was notable, driven by both increased demand and escalating tensions in the Middle East. Brent futures surged to $87.74 per barrel, while US West Texas Intermediate (WTI) crude futures rose to $84.06 per barrel. Heightened concerns followed an Israeli strike on Iran’s embassy in Syria, sparking fears of potential supply disruptions in the region.
Meanwhile, market sentiment regarding a potential June interest rate cut by the US Federal Reserve slightly weakened, with the likelihood dropping to 61%, down from 70% a week earlier.
Japanese Finance Minister Shunichi Suzuki reiterated the government’s commitment to addressing excessive exchange rate fluctuations to protect the yen’s value. Both Japanese and Chinese authorities closely monitored currency movements against the US dollar, amidst ongoing speculation regarding Beijing’s stance on a weaker yuan. Investors are now turning their attention to US employment figures later this week, as well as various election events taking place in Kuwait, Slovakia, and Poland.
In the Eurozone, all eyes are on the release of flash inflation data, with speculation swirling about potential rate cuts by the European Central Bank.
Turning to the UK, the economic calendar is relatively quiet, with focus primarily on final manufacturing and services PMIs. Initial reports indicate that manufacturing surged to a 21-month high in March, approaching the expansion threshold, while services PMI is expected to maintain its five-month growth streak.
Despite rising optimism about potential interest rate cuts, house prices in the UK slipped in March, as per Nationwide’s latest house price index.
On another note, London’s AIM market is set to witness another departure, with Redx Pharma becoming the latest company to delist from the London Stock Exchange’s scale-up public market.