HomeNews UKFTSE closes up and Wall St holds gains amid inflation pressure

FTSE closes up and Wall St holds gains amid inflation pressure

All three major US indexes opened higher ahead of key inflation data and big bank earnings this week. Photo: AP

Wall Street is higher on Tuesday as investors anticipate key US inflation data this week, while the FTSE 100 reverses earlier gains in afternoon London trade as the data picks up steam. The UK’s latest wages deal a blow to the Bank of England’s (BoE) bid to lower prices. inflationary.

The Dow Jones Industrial Average (^DJI) rose 0.43% to 34,089.23 points, the S&P 500 (^GSPC) gained 0.31% to 4,409.53 points, while the NASDAQ high-tech index (^IXIC) gained 0 points. .28% to 13,723.38.

Meanwhile, the FTSE 100 (^FTSE) gained 0.12% to close at 7,282 points. CAC 40 (^FCHI) in Paris rose 1.10% to 7,222 points, while in Germany, DAX (^GDAXI) increased 0.73% to 15,782 points.

It comes after the Office for National Statistics (ONS) said average weekly earnings, excluding bonuses, hit an annual rate of 7.3% in the three months to May – a high recorded and higher than analysts expected.

Investors are also anticipating this week’s second-quarter (Q2) earnings report from JPMorgan (JPM), Wells Fargo (WFC), Citigroup (OLD) and BlackRock (BLK)

In Asia, markets recovered overnight as China’s factory gate prices in June fell by the most in 7 and a half years, while consumer inflation hit its lowest level since 2021.

Tokyo’s Nikkei 225 (^N225) closed up 0.04% to 32,203.57 points, while the Hang Seng (^HSI) in Hong Kong gained 1.18% to 18,698.19. In mainland China, the Shanghai Composite (000001.SS) also increased 0.48% to 3,219.28 points.

In currencies, UK wage growth data put the pound in its strongest position against the US dollar since April 2022, as investors doubled their bets in favor of the US dollar. interest rates higher than those of the Bank of England.

The exchange rate between the British pound and the dollar (GBPUSD=X) increases 0.28% to 1.28, meaning that 1 pound will get you $1.28. Meanwhile, the pound to euro exchange rate (GBPUR=X) rose 0.10% to 1.16.

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Matthew Ryan, head of market strategy at global financial services firm Ebury, said: “Financial markets are currently pricing UK interest rates at as high as around 6.35% in the past year. the first quarter of 2024, which will certainly make the BoE the most hawkish major hub.” banks in the world from now on.

“We think the markets are a bit ahead of themselves, although we expect the MPC to rise another 50 basis points in August, with the real risk of the prime rate exceeding 6%.”

Meanwhile, oil prices extended gains on Tuesday as OPEC+ production cuts offset investor demand concerns.

US Crude Oil, or West Texas Middle (CL=F), rose 0.47% to trade at $73.33 a barrel, while Brent crude (BZ=F) increased 0.36% to 77.97 USD/barrel.

Watch: Jeremy Hunt prioritizes tackling inflation over tax cuts amid pressure from Tory MPs

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