USDJPY nears 160, Britvic rejects Carlsberg offer

The dollar rose to 159.94 yen, prompting intervention warnings from Japanese officials as the yen's weakness pressures the Bank of Japan. European shares are mostly down, with geopolitical tensions from upcoming US presidential debates and French elections weighing on markets.

Equities

The FTSE 100 fell 0.4% on the day but gained 1% for the week, ending a five-week losing streak. The FTSE 250 dropped 0.3% but managed to secure its first weekly gain in four weeks.

British retail sales rose by 2.9% in May, a sharp rebound from April’s revised 1.8% decline, exceeding economists' expectations of a 1.5% increase. Investor sentiment brightened after the Bank of England indicated a potential interest rate cut in August as inflation hit the 2% target for the first time in nearly three years.

Britvic surged 7.8% after rejecting a revised cash offer from Carlsberg Group. United Utilities gained 1.6% following an upgrade from J.P. Morgan to "overweight" from "neutral." However, B&M saw a 1.7% decline after Morgan Stanley downgraded its rating to "underweight" from "equal weight."

In the US, the S&P 500 and Nasdaq closed slightly lower, with the S&P 500 down 0.16% and the Nasdaq falling 0.18%. The Dow Jones Industrial Average edged up 0.04%. Nvidia shares dropped for a second consecutive day, dragging down the technology sector by 0.84%. Nvidia’s decline of 3.22% significantly impacted the market, with trading volumes in Nvidia call options reaching unprecedented levels.

Spirit AeroSystems rose 6% following reports of Boeing nearing a buyout deal. Sarepta Therapeutics soared 30.14% after the FDA expanded the use of its gene therapy for Duchenne muscular dystrophy.

Forex & Commodities

US business activity reached a 26-month high in June, pushing the US dollar to an eight-week high. A soft reading in the upcoming PCE price index (this Friday) could support expectations of a rate cut as early as September.

The yen hovered near 160 per dollar, prompting Japanese authorities to issue warnings about potential intervention. The yen recently weakened to 159.94 per dollar, its lowest since April 29, before firming slightly to 159.70.

Gold prices edged up 0.2% to $2,324.25 per ounce as Treasury yields fell.

Oil prices inched down as concerns over prolonged high interest rates lifted the dollar. Brent crude futures slipped 5 cents to $85.19 per barrel, and US West Texas Intermediate crude fell 7 cents to $80.66 per barrel. Despite the slight dip, both benchmark crude contracts gained around 3% last week due to stronger US oil products demand and OPEC+ supply cuts.