FTSE to rise after long weekend as oil prices rise

Equities

On Monday UK markets were closed for the first May bank holiday but European markets, as judged by the Euro STOXX 600 index, closed at a one week high.

Switching focus to the US, the S&P 500 rose by 1.03% to reach 5,180.74, reflecting broader market optimism. The Nasdaq Composite similarly saw an increase, up by 1.19% to 16,349.25, led by strong performances in the tech sector.

Tyson Foods shares dropped by 5.7%. Despite surpassing earnings expectations for the second quarter, the company warned of the ongoing impact of inflation on consumer demand, which might pressure future profitability.

Micron Technology's shares surged by 4.7% following an upgrade by Baird, an investment firm that highlighted prospects for stronger performance. Additionally, Advanced Micro Devices and Super Micro Computer saw their stocks increase by 3.4% and 6.1%, respectively, regaining some of the ground lost after disappointing earnings reports the previous week.

The energy sector in the US also mirrored the upbeat sentiment in Europe, with the S&P 500 energy index rising on the back of Saudi Arabia raising its crude price for most customers. 

Forex & Commodities

The US dollar declined against most currencies on Monday, marking its fourth consecutive session of losses, influenced by recent labour market data and comments from Federal Reserve officials which fostered hopes for a potential interest rate cut.

However, the dollar did strengthen against the Japanese yen, following last week's suspected interventions in the market by Japanese authorities. The dollar index dropped slightly by 0.1% to 105.06, while the euro appreciated by 0.12% to $1.0771. Meanwhile, the yen weakened, decreasing by 0.61% against the dollar to 153.92 per dollar.

In the UK, the British pound strengthened by 0.16% to $1.2564. This movement comes ahead of the Bank of England's policy announcement scheduled for Thursday, where interest rates are expected to remain at 5.25%.

Turning to commodities, Brent crude futures rose by 0.28% to $83.56 per barrel, and US West Texas Intermediate crude also increased by 0.31% to $78.72 a barrel. These changes occurred amidst ongoing geopolitical tensions and talks of a ceasefire in Gaza which have yet to resolve.