Copper price takes off, silver over $30/oz

Equities

On Friday, the FTSE 100 closed slightly lower, ending the day down 0.2% and the week with a marginal decrease of 0.1%. Among specific stocks, Haleon saw a decline of 1.0% after GSK divested its remaining stake, raising £1.25 billion. Land Securities Group experienced a 2.6% drop, despite reporting a smaller annual loss, as high interest rates impacted property valuations negatively. In contrast, the precious metal miners sector enjoyed gains, with a notable 2.4% increase, buoyed by rising gold and silver prices.

Turning to the United States, the major indices displayed mixed performances. The Dow Jones Industrial Average broke new ground by closing above 40,000 for the first time, ending the week up 0.34%. The S&P 500 also edged higher by 0.12%, marking its fifth consecutive week of gains, while the Nasdaq Composite dipped slightly by 0.07%. Among notable company movements, Reddit's shares surged by 10% following news of a partnership with OpenAI, potentially boosting the application of AI technologies in social media contexts. Advanced Micro Devices (AMD) also saw a rise of 1.1% after Microsoft announced it would offer AMD's AI chips as an alternative to Nvidia's, highlighting increasing competition in the AI processor market.

GameStop's shares, however, took a significant hit, dropping nearly 20% after the company anticipated a decline in first-quarter revenue and announced a mixed-shelf offering. This substantial decrease underscores the ongoing challenges facing the retail gaming sector.

Forex & Commodities

The US dollar remains steady, reflecting traders' anticipation for further insights on the future direction of US interest rates. This comes after Federal Reserve officials voiced caution despite a slowdown in inflation. The euro experienced a slight increase to $1.08825, approaching a near two-month high. The British pound also performed well, reaching a two-month peak at $1.2711. Market expectations suggest a 56 basis point reduction in interest rates by the Bank of England, starting in June, pending upcoming UK inflation data.

In commodities, gold reached a record high at $2,440.60 per ounce, buoyed by the prospect of a US rate cut as inflation cools. The rally in gold reflects a weakening dollar, making dollar-priced bullion more appealing to investors using other currencies. Silver also climbed, achieving an over 11-year high at $32.28 per ounce, driven by similar market dynamics.

Oil prices have been notably influenced as Russia remains China's top oil supplier, with volumes up 30% from the previous year despite a slight decrease compared to March. This robust demand from China comes even as Saudi Arabia's shipments to the country fell by a quarter due to higher prices.

Later this week the Federal Reserve's upcoming meeting minutes and the Personal Consumption Expenditures price index report are highly anticipated.