Starbucks stock slumps, Yen Surges on Suspected Intervention

Equities

On Wednesday, the FTSE 100 index closed down 0.3%. The day saw particular weakness in heavyweight oil and gas stocks, which fell 1.7% as oil prices dipped to a seven-week low, influenced by an unexpected increase in US crude inventories and the potential for a Middle East ceasefire.

GSK's shares advanced 1.9% after the pharmaceutical giant upgraded its full-year profit forecast and anticipated higher sales in the first half of the year. Haleon's stock fell 2.5% due to first-quarter revenues that failed to meet expectations.

Aston Martin's shares took a significant hit, plummeting 6.7% after the luxury car manufacturer reported a larger than expected first-quarter pretax loss. Shell also saw a decline, with shares dropping 1.5% as the energy titan exited China's power markets in a strategic move to concentrate on more profitable ventures.

Shifting focus to the US, the Dow Jones Industrial Average edged higher, gaining 0.23%, while both the S&P 500 and Nasdaq Composite recorded declines of 0.34% and 0.33%, respectively.

Advanced Micro Devices fell sharply by 9.0% following a disappointing sales forecast for its artificial intelligence chips. Super Micro Computer's shares dropped 14.0% after the firm missed its quarterly revenue expectations.

Amazon.com saw its shares increase by 2.2% on the back of better-than-expected quarterly results, bolstered by growing interest in its AI-driven cloud computing services.

Johnson & Johnson also reported positive news, with its stock rising 4.6% as the company announced it would proceed with a substantial $6.48 billion lawsuit settlement regarding claims that its talc products caused ovarian cancer.

Starbucks faced a steep decline, with shares tumbling 15.9% after the coffee chain reduced its sales forecast, marking its first drop in same-store sales in nearly three years. CVS Health also suffered significant losses, with its shares plunging 16.8% after earnings fell short of consensus and it slashed its annual profit forecast.

Forex & Commodities

The Japanese yen recently saw a significant rise against the US dollar, reaching as high as 153.19 from 157.55. Although there is no official confirmation from Japanese officials, data suggest the Bank of Japan may have spent around 5.5 trillion yen to support the currency.

The US dollar weakened slightly, influenced by the Federal Reserve's recent statements. Despite holding interest rates steady, the Fed hinted at possible future reductions, though it seeks more confidence in declining inflation rates before making cuts. Meanwhile, the British pound and the euro remained relatively stable against the dollar.

Brent crude and West Texas Intermediate prices rebounded slightly due to speculations that the US might replenish its strategic reserves if prices fell below certain thresholds.

On the economic front, recent data from the US shows a decrease in job openings to a three-year low, which could impact future Fed decisions regarding interest rates. Moreover, private payroll figures exceeded expectations, suggesting continued resilience in the employment sector.