Spreadex Market Update
UK & US Markets Reopen, Nvidia Sparks Volatility
Equities
The FTSE 100 index dipped 0.3% on Friday, marking its fourth consecutive decline. This is its longest streak of losses since February. This happened amid political uncertainty due to the upcoming general elections in the UK. Despite the decline in the main index, the domestically focused FTSE 250 mid-cap index rose by 0.7%, breaking a three-session losing run.
Infrastructure firm National Grid saw its shares fall by 3.7%, significantly impacting the utilities sector which overall fell 3.3%. On the other hand, AJ Bell experienced a 4.6% drop in its share price after the company's founder sold 7.5 million shares. Conversely, Redcentric saw its shares surge by 12.8% following news that it was exploring a sale with the assistance of financial advisor Lazad.
On Friday the S&P 500 index advanced, gaining 0.70% to close at 5,304.72, while the tech-heavy Nasdaq Composite added 1.1%, ending at 16,920.79. The Dow Jones Industrial Average increased slightly by 0.01% to 39,069.59.
Among US companies, Nvidia stood out with a significant stock price move, gaining momentum after reporting earnings that surpassed expectations and raised future earnings projections.
Forex & Commodities
The US dollar has softened slightly as market participants anticipate crucial inflation data from several key economies this week, potentially shaping future global interest rate directions. The euro appreciated to $1.0877, gaining 0.16%, despite cautious signals from the European Central Bank about possible rate cuts. This week, inflation figures from Germany and the broader eurozone will be scrutinised for their implications on the ECB's monetary policy.
The British pound and New Zealand dollar both reached over two-month highs against the dollar, trading at $1.2778 and $0.6161, respectively.
In commodity markets, gold prices held steady, influenced mainly by small moves in the dollar. Spot gold was recorded at $2,349.89 per ounce early on Tuesday, following a 1% increase the previous day. Market analysts are closely watching $2,310 as a key support level for gold this week, ahead of the anticipated PCE data release.
Oil prices saw a modest increase, with July Brent crude trading up slightly at $83.16 a barrel.
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