Gold and Bitcoin Hit Record Highs

Equities

On Tuesday, Britain's FTSE 100 slightly edged upwards, closing up by 0.1%. This modest gain came despite a dip to near three-week lows earlier in the day, with healthcare and utilities sectors leading the rebound. The anticipation of Finance Minister Jeremy Hunt's upcoming budget statement, expected to include a cut in social security contributions, added a note of caution.

Ashtead Group experienced a notable decline, dropping 9.4% after projecting its full-year group rental revenue at the lower end of the anticipated 11%-13% growth range. This adjustment followed what was described as an "ordinary" quarter, leading to a tempered revenue growth expectation.

A standout performer was Spirent Communications, which surged by an impressive 63.3%. This leap followed news of a buyout offer from US-based communications equipment firm Viavi Solutions, valuing the British company at approximately £1 billion.

Wall Street saw all three major indices retreat by more than 1%. The Nasdaq, heavily influenced by technology stocks, led the downturn with a 1.65% drop.

Apple shares fell by 2.8% following a report showing a 24% year-on-year plunge in iPhone sales in China, highlighting increased competition from domestic manufacturers like Huawei. Similarly, the chip sector faced challenges as Advanced Micro Devices encountered difficulties in selling an artificial intelligence chip in China, contributing to a 2% decline in the Philadelphia semiconductor index.

Tesla stocks dropped 3.9% after a suspected arson attack halted production at its European Gigafactory near Berlin. Meanwhile, Target's shares climbed 12% after the retailer forecasted annual comparable sales largely above estimates, betting on its various strategies to enhance consumer spending.

Forex & Commodities

The dollar saw a slight decrease against a basket of major currencies, influenced by the latest US services industry data which indicated a slowdown in growth due to a drop in employment. This development comes as the financial markets anticipate a busy week filled with the European Central Bank's rate decision, Federal Reserve Chair Jerome Powell's testimony to Congress, and the release of US employment figures.

Bitcoin, after reaching a new high, experienced a significant pullback, closing down 7.04% at $62,745.23, following a notable rally that saw it up nearly 50% for the year. This movement in the cryptocurrency market is largely attributed to investments in US spot exchange-traded crypto products and the anticipation of global interest rate reductions.

Gold prices reached a new peak, surpassing the $2,100 mark, driven by increasing expectations of a US interest rate cut in June and demand for safe-haven assets. Spot gold was up 0.8% at $2,132 per ounce, having earlier hit a record of $2,141.59.

Oil prices rebounded modestly after recent declines, with Brent crude futures and US West Texas Intermediate crude futures both experiencing slight increases.