UK stocks finally come back into fashion
2024-05-06
Summary:
Global stocks cheered softer-than-expected US jobs data. Britain's FTSE 100 hit a record high on Friday and marked its second straight week of gains.
Global stocks cheered softer-than-expected US jobs data that had put investors on edge. FTSE 100 hit a fresh record high on Friday and registered a second straight week of gains.
Signs of easing inflation, hopes of early interest rate cuts by the BOE and attractive prices have helped boost confidence in UK equities. Interest-rate-sensitive homebuilder stocks were benefited in particular.
UK service sector saw activity surge to the highest level in almost a year last month despite increased cost pressures. That marked the sixth consecutive month in positive territory.
Standard Chartered said its earnings grew over the start of the year due to its big presence in Asia. HSBC’s Q1 results were likewise buoyant, bucking the trend of UK banks which have seen profits dwindle.
Anglo American CEO met on Friday South African mines minister Gwede Mantashe for the first time to discuss the bid from BHP. Glencore is also studying an approach for the company, sources told Reuters.
Anglo American share price has soared by roughly 39% so far, which played a major role in propelling the benchmark index. The UK stock market have gained nearly the same as its German and France peers.
The FTSE 100 has entered overbought territory as indicted by RSI – a sign of potential profit-taking. Political uncertainties could weigh against stocks as Tories were trounced in the latest local elections.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
Crude prices set for weekly gain after stock draw
Asian oil prices surged Friday as global benchmark Brent eyed its first weekly gain in three weeks, driven by rising demand and a weaker US dollar.
2024-05-17
European and US Stocks Soar to Record Highs
On Wednesday, Wall Street's key indexes hit records. S&P 500 and Nasdaq 100 rose over 1%, led by tech stocks posting a good CPI report.
2024-05-16
US CPI April: Inflation hits a record high
March's CPI surged to 3.5%, led by higher housing and energy expenses, dimming prospects for imminent Fed rate cuts.
2024-05-15
