Yen Stability, Gold and STOXX 600's Record Highs

Equities

The FTSE 100, following a trend across global markets, is set to open higher alongside its Asian counterparts after a four-day holiday weekend.

The UK benchmark just had its best monthly finish since December 2022 as investors brushed off concerns of a shallow recession helped by expectations for a lower interest rates later in the year.

JD Sports stood out with a 15.6% surge to a near three-month high, following the announcement that its pre-tax profit for the year would meet the revised guidance provided in January. This success underscored the retailer's robust position in the sports retail sector, attributed to its expansive relationships with major brands and its global presence.

Precious and industrial metal miners also contributed to the market's upward trend, benefiting from rising metal prices driven by signs of economic stabilisation in China.

In the US, the Dow and S&P 500 faced declines, with the Dow dropping by 0.6% and the S&P 500 by 0.2%. This was largely due to investor concerns over Federal Reserve interest rate decisions following unexpectedly strong manufacturing data, which led to a rise in Treasury yields. The Institute for Supply Management reported that its manufacturing PMI rose to 50.3, the first reading above 50 since September 2022. Conversely, the Nasdaq Composite saw a slight increase of 0.1%, buoyed by gains in the technology sector and a 1.2% rise in the semiconductor index. Notably, AT&T's shares fell by 0.6% after the company reported a significant data leak affecting customers.

Forex & Commodities

On Monday, the US dollar was buoyed by data indicating growth in the US manufacturing sector for the first time since September 2022, which also resulted in a reduction in market expectations for a Federal Reserve rate cut in June. This positive manufacturing data, detailing a rebound in production and new orders, contrasted with previous months of contraction, lifting the dollar index by 0.507% to 105.01. This USD strength saw the British pound dip, dropping by 0.63% against the dollar.

Gold initially reached a new record high on Tuesday morning but has pared gains as the rising dollar and bond yields exerted pressure. The precious metal's performance reflects ongoing market speculation about the Federal Reserve's monetary policy direction, particularly in light of recent US economic data.