G7 Statement Hopes Stabilise Yen. Netflix Earnings Up

Equities

On Wednesday, the FTSE 100 climbed, driven in part by strength in the industrial metals sector. The index increased by 0.4%, buoyed by companies like Rio Tinto, which saw its shares advance 2.6% following a stable operational update.

ASOS reported a positive development, its shares up by 4.9%. The online fashion retailer confirmed its commitment to its full-year earnings forecast and announced the appointment of a new Chief Financial Officer. These factors contributed to investor confidence despite ongoing challenges such as competitive pressure and surplus inventory.

Another notable mover in the UK market was Entain, which owns Ladbrokes; the company’s shares increased by about 1.0% after reporting better-than-expected online gaming revenue for the first quarter, thanks to an expanding customer base.

Across the Atlantic, the US stock markets faced a tougher session, with the S&P 500 dropping 0.58% to 5,022.21, marking its fourth consecutive session of losses and setting the stage for its third consecutive weekly decline.

Travelers, a giant in the insurance sector, saw its stock plummet by 7.41% after failing to meet first-quarter profit expectations, making it one of the most substantial negative impacts on the S&P 500 and the Dow Industrials.

Abbott Laboratories also declined by 3.03%, despite surpassing quarterly expectations, due to a disappointing annual forecast.

In contrast, United Airlines provided a bright spot in the US market, with its shares soaring 17.45% after issuing a stronger-than-anticipated profit forecast for the current quarter. This upbeat announcement significantly lifted the NYSE Arca airline index, which increased by 3.82%, marking its largest daily percentage jump since early February.

Forex & Commodities

On Wednesday, the US dollar dipped for the first time in six days, showing a minor retreat from recent highs. This decrease comes despite a sustained period of gains, where the dollar index has risen approximately 4.7% this year. The dollar's drop included a 0.3% decline against the Japanese yen, with the exchange rate settling at 154.32 yen.

In Europe, European Central Bank officials reiterated their stance for a possible rate cut in June, aligning with their objective to bring inflation back to the 2% target despite potential volatility in price paths.

Gold prices experienced a rise, with spot gold increasing by 0.6% to $2,374.97 per ounce, driven by heightened geopolitical tensions which enhanced its appeal as a safe-haven asset. This increase follows a record high set the previous week.