FTSE 100 hits Record High, Tesla Shares Surge

Equities

On Tuesday, the FTSE 100 reached an all-time high, surging to 8,076.52 points, surpassing its February 2023 peak. This marked the index's fifth consecutive session of gains, closing up 0.3%. Among the notable UK companies, Associated British Foods, owner of Primark, led the charge with a 9.0% increase in its stock price. This rise came after the company announced a forecast for significant growth in its full-year profit, following a robust 39% jump in the first half of the year. This performance indicates Primark's success in gaining market share from its competitors in a challenging UK retail environment.

In other UK retail news, Ocado's stock price spiked by 5.4% as it was reported to be the UK's fastest-growing grocer. This news came alongside a broader trend of falling grocery price inflation in the UK, which has been decreasing for 14 consecutive months, aided by increased promotional activities by supermarkets.

On the sports retail front, JD Sports Fashion saw its shares climb 3.8% after the company announced plans to acquire US athletic-fashion retailer Hibbett Inc for approximately $1.08 billion.

Switching to the US, the stock market also experienced significant gains. The Dow Jones Industrial Average rose by 0.69%, adding 263.71 points to close at 38,503.69. The S&P 500 advanced by 1.20%, gaining 59.95 points to reach 5,070.55, while the Nasdaq Composite increased by 1.59%, adding 245.34 points to settle at 15,696.64.

In US corporate news, Tesla kicked off the earnings season for technology heavyweights with the announcement of new electric vehicle models and a quarterly revenue that fell short of analysts' expectations. Despite this, Tesla's shares surged by as much as 13% in extended trading hours. General Motors also reported better-than-expected quarterly results, leading to a 4.4% rise in its shares.

Conversely, JetBlue's shares plummeted nearly 19% after the airline adjusted its annual revenue forecast downward, following weaker-than-expected revenue in the first quarter. Meanwhile, General Electric Aerospace's shares soared by 8.3% following a bullish full-year profit forecast.

Forex & Commodities

The Japanese yen plummeted to a 34-year low against the US dollar and a 16-year low against the euro, keeping expectations high for intervention by Japanese authorities. The US dollar reached a high of 154.88 yen, nearing the critical level of 155 yen, which traders view as a trigger for Japan to step in. Despite this, the dollar later stabilised at 154.79 yen.

In other currency movements, the euro appreciated to a two-week high against the dollar, trading at $1.0711, bolstered by strong business activity in the Eurozone. The British pound, influenced by dovish comments from the Bank of England and strong local business activity data, recovered from a five-month low to $1.2450, marking an increase of 0.8%.

On the commodities front, gold prices remained steady after a recent dip, with spot gold trading at $2,325.80 per ounce. This stability comes despite diminished concerns over Middle Eastern tensions, which typically drive investors towards the safety of gold.

Oil prices saw a modest rise following an unexpected drop in US crude stocks, which suggests stronger demand. Brent crude edged up by 5 cents to $88.47 a barrel, and West Texas Intermediate crude increased by 8 cents to $83.44 a barrel.

Economic indicators revealed a cooling of US business activity in April, with the S&P Global Composite PMI Output Index dropping to 50.9 from 52.1 in March. This data, alongside the upcoming US GDP and inflation readings, is keenly watched by investors to gauge the likelihood and timing of interest rate cuts by the Federal Reserve. The focus remains on the US personal consumption expenditures