BT Shares Surge, HSBC Stake Reduction, Euro Inflation Data

Equities

The FTSE 100 slipped on Thursday, closing down 0.1%. The pound strengthened somewhat, and this likely contributed to the FTSE's dip into negative territory as investors adjusted their expectations regarding the pace of interest rate cuts by the Bank of England.

BT Group's shares surged a record 17.2% after CEO Allison Kirkby announced plans to more than double the company’s free cash flow over the next five years.

Sage Group’s shares fell 9.4% after the software company lowered its full-year revenue forecast, citing slower growth expectations in the United States. EasyJet shares also declined by 6.0% as the budget airline confirmed CEO Johan Lundgren would step down in early 2025 and reported first-half losses in line with expectations.

In the United States, the stock market closed lower, with the Dow Jones Industrial Average falling 0.10% to 39,869.38. The S&P 500 and Nasdaq Composite also saw declines of 0.21% and 0.26%, respectively.

Walmart saw its shares rise by 7% after the retail giant raised its fiscal 2025 sales and profit forecasts, betting on easing inflation to boost demand for essentials. In contrast, Deere’s shares dropped 4.8% following a cut in its annual profit forecast for the second time. Additionally, shares of GameStop and AMC Entertainment fell significantly, by 30% and 15% respectively, as the meme stocks faced losses following a brief rally.

Shares of Swiss insurer Chubb climbed 4.7% after Warren Buffett's Berkshire Hathaway revealed a $6.7 billion stake in the company.

Forex & Commodities

On Thursday, the US dollar showed signs of strength, rising after a report indicated a 0.9% increase in US import prices last month, which could suggest the Federal Reserve might delay interest rate cuts. The dollar index increased by 0.27% to 104.47. This uptick contrasts with Wednesday’s sharp decline when inflation data revealed a slowing to 0.3% in April, sparking speculation about potential rate reductions by the Fed.

The British pound touched a one-month high of $1.2675 but later retreated, down 0.13% to $1.1268. Similarly, the euro peaked at a two-month high at $1.0895 before dipping to $1.0867.

Gold prices have been on an upward trajectory, with spot gold rising 0.1% to $2,379.14 per ounce, marking a 0.7% increase for the week. Silver and platinum also saw movements, with silver reaching a three-year peak in the last session before falling 0.2%, and platinum up about 7% for the week.

Oil prices have shown positive momentum as well, with Brent crude rising 21 cents to $83.48 a barrel and US West Texas Intermediate (WTI) crude up 7 cents to $79.30 a barrel.