Macron Calls Snap Elections, Euro Hits Monthly Low

Equities

The FTSE 100 faced a downtick of 0.5%, marking a continuation of losses in its fourth consecutive week, the longest streak of weekly declines since 2020. The mid-cap FTSE 250 also dropped by 0.8%, tallying its second consecutive weekly loss.

Within the FTSE 100, the most significant declines were seen among precious metal miners, where stocks tumbled by 5.2%. This drop coincided with a more than 2% fall in spot gold prices, which significantly impacted the sector, marking its worst day in over seven weeks. The real estate sector also experienced notable declines, with both sectors falling by over 2%.

The Irish drinks producer C&C Group, listed on the mid-cap FTSE 250, saw its shares decrease by 0.5%. This followed an announcement that Group CEO Patrick McMahon would step down immediately, due to accounting errors discovered from his previous tenure as CFO.

Across the Atlantic, Wall Street concluded the trading day with marginal losses, amidst a backdrop of robust US employment data that initially fuelled optimism about the economic outlook but subsequently raised concerns over continued high interest rates. The S&P 500 slipped by 0.11%, while the Dow Jones Industrial Average fell by 0.22%, and the Nasdaq Composite dropped by 0.23%.

In US company news, GameStop saw a significant drop of 39% in its share price amid volatile trading. This occurred as the company's stock influencer 'Roaring Kitty' made a return to YouTube, which coincided with news of a potential stock offering and a drop in quarterly sales. Nvidia, another major player in the US market, also experienced a decrease, with its market capitalization slipping back below the $3 trillion mark.

Lyft, however, reported a rise of 0.6% in its shares after forecasting a 15% annual growth in its gross bookings through 2027. This positive outlook provides a glimmer of optimism in an otherwise subdued market environment.

Forex & Commodities

On Friday, the US dollar saw a notable uptick following a strong US jobs report, which suggested a delay in expected Federal Reserve easing. The dollar index, measuring the US dollar against six major currencies, rose by 0.8% to 104.91. This increase reflects a shift in market expectations, with the rate futures market now pricing in just one rate cut for 2024. The British pound, however, retreated against the dollar, dropping to $1.2722 after peaking earlier at $1.2825.

In the commodities market, gold prices steadied after a significant 3.5% drop on Friday—its largest since November 2020—triggered by the same jobs data. This adjustment in gold prices came ahead of the upcoming Federal Reserve policy meeting, which could further influence the market depending on the Fed's commentary and economic projections.

Oil prices experienced a modest rise with Brent crude futures increasing by 0.4% to $79.90 a barrel, and US West Texas Intermediate crude advancing by 0.3% to $75.79 a barrel. This increase is supported by expectations of strong summer fuel demand despite the higher dollar weighing on commodity prices.