FTSE 100 Hits Record; Bank of England June Cut?

Equities

The FTSE 100 hit a new record high, climbing 0.5% to close at 20,491.99 points. This uplift in the UK's premier index came amid a backdrop of weakening sterling, largely influenced by expectations of a dovish stance from the Bank of England in their upcoming monetary policy meeting.

AstraZeneca saw its shares advance by 1.2% following the announcement of a global withdrawal of its COVID-19 vaccine, which the company attributed to the surplus availability of updated vaccines.

Informa also enjoyed gains, with shares up 2.3% as the events organiser increased its share buyback programme and forecasted its annual revenue and adjusted operating profit at the upper end of its previous estimates, signalling a robust outlook for the company.

Meanwhile, the mid-cap FTSE 250 index also rose by 0.4%, maintaining its position around 15-month highs, boosted by positive performances from several companies. Notably, John Wood Group's shares surged 16.9% after rejecting a 1.42 billion pound buyout proposal from a Dubai-based firm, stating the offer undervalued the company's future prospects.

Across the Atlantic, the US stock market presented a mixed picture. The Dow Jones Industrial Average extended its winning streak to six sessions, up by 0.44% to close at 39,056.39, buoyed by optimism over US monetary policy. However, rising Treasury yields following a 10-year notes auction put a dampener on the broader market sentiment, leading to subdued performances in other major indices. The S&P 500 remained flat, and the Nasdaq Composite dipped by 0.18%.

Uber shares tumbled by 5.7% after the ride-hailing company posted a surprise quarterly loss and a weaker-than-expected gross bookings forecast for the second quarter. Intel also faced a downturn, falling 2.2% following a revenue warning exacerbated by the US revoking some of the chipmaker's export licences for China.

Tesla's shares declined by 1.7% amid reports that US prosecutors were investigating potential securities or wire fraud related to its self-driving technology claims.

In the utilities sector, a notable exception to the downward trend, the S&P utilities index rose by 1.1%, with Vistra Corp jumping 9.1% after reporting strong earnings.

Forex & Commodities

On Wednesday, investors were cautious as they awaited new inflation data, potentially impacting decisions on interest rate cuts by the Federal Reserve. This backdrop saw the US dollar strengthen, up 0.13% at 105.55 against a basket of major currencies. The euro fell slightly by 0.09% to $1.0742. Meanwhile, the yen dropped 0.61% to 155.64 per dollar, amid ongoing intervention by Japanese authorities to support the currency.

In commodity markets, gold prices were mostly steady, reflecting investors' anticipation of the upcoming US inflation data. Spot gold closed almost flat at $2,312.61 per ounce, while US gold futures for June delivery dipped slightly by 0.1% to settle at $2,322.30 per ounce.

Oil prices saw a slight increase after a report indicated a draw in US crude stockpiles, suggesting a pick-up in refining activity as the summer driving season approaches. US crude settled up 61 cents at $78.99 a barrel, and Brent crude rose 42 cents to settle at $83.58 a barrel.