ECB, BOE, Netflix Earnings Awaited

Equities

The FTSE 100 saw a decline of 0.5% on Thursday, influenced by losses in the banking and insurance sectors, as traders responded to the European Central Bank's indication that rate cuts might begin soon. Among the notable movements, Aviva, Lloyds Banking Group, and Reckitt Benckiser experienced declines as they traded without entitlement for dividends. The UK banks index notably fell 2.7%, marking its largest drop in nearly two months.

AstraZeneca shares rose by 2.1%. The pharmaceutical giant announced plans to increase its annual dividend for 2024, underpinned by strong performance and robust cash generation. Additionally, Darktrace's shares surged by 6.3% after the cybersecurity firm raised its annual revenue and margin forecasts for the third time this year. Lok'NStore also stood out with a 16.4% increase to an all-time high after Shurgard agreed to acquire the self-storage company in a deal valued at 378 million pounds.

US markets showed a stronger performance with the Nasdaq leading gains by climbing 1.68% due to a strong showing from tech-related momentum stocks. The S&P 500 also ended the day higher, up by 0.74%. The Dow Jones Industrial Average, however, remained virtually unchanged.

CarMax saw its shares tumble by 9.2% after the company reported quarterly earnings that fell short of analyst estimates and cast doubt on its long-term vehicle sales targets. Rent the Runway, on the other hand, saw an impressive surge of 161.9%. The apparel rental company is leveraging artificial intelligence to fuel its growth this year, which sparked significant investor interest.

Forex & Commodities

On Thursday, the US dollar saw a modest increase in value against a backdrop of continuing inflation concerns, despite softer-than-expected March US producer prices. The euro fell slightly by 0.1% to $1.07026 following the European Central Bank's decision to keep interest rates at 4%, though signalling potential future cuts.

The Japanese yen reached a 34-year low against the dollar, trading flat at 153.23 yen after earlier slipping below 153 yen post the US Producer Price Index (PPI) release. The PPI data showed a 0.2% month-on-month rise for March, lower than the anticipated 0.3%, suggesting less pressure to raise US interest rates.

Gold prices benefited from the weaker PPI data, rising by 1.1% to $2,360.52 per ounce as the prospects of US rate cuts appeared more feasible.

Oil prices rebounded after a dip in the previous session, influenced by rising geopolitical risks in the Middle East. Brent crude futures increased by 0.84% to $90.49 a barrel, and US West Texas Intermediate crude rose by 1.02% to $85.89. Despite these gains, both benchmarks are on track for a weekly loss.