- The FTSE 100 reaches 188 points
- US stocks higher
- Carnival shares rise during the day
16.51: FTSE closes steadily forward
The FTSE 100 closed firmly higher on Friday as the market decided to make a decent rebound.
The highest index of British stocks ended the day with about 188 points, or 2.68%, at 7208.
Cruise giant Carnival saw a noticeable rise in shares on Friday in a sector that is generally under constant pressure. Shares rose more than 8% during the day as the company offered a more positive outlook for 2023.
Michael Huson, chief market analyst at CMC Markets, said: “The cruise industry, like most in the tourism sector, has had a difficult two years. Before the pandemic in 2019, Carnival’s annual revenue was $ 20.8 billion and it doesn’t look like it will come close to that before 2023.
“Today’s figures for the second quarter recorded losses of $ 1.8 billion, which led to a loss from the first quarter to $ 3.7 billion.
“Revenue for the first half rose to just over $ 4 billion, with 2.4 billion coming in the second quarter, an almost 50% increase over the first quarter,” he added.
15.52: FTSE flying
The FTSE 100 is flying and, despite the shaky environment, is on track for its first positive week after three weeks of decline.
Both industrial and consumer-oriented stocks are on the rise, with US-focused names doing well, including Ashtead Group PLC at the top of the list, and Flutter Entertainment PLC doing well.
There are 15 blue chips up between 4-6%, others include Spirax-Sarco Engineering (LSE: SPX) PLC, the aforementioned Croda, Prudential PLC and Howden Joinery Group (LSE: HWDN) PLC.
Only five of the Footsie are in the red, including the owner of British Gas Centrica PLC (LSE: CNA), plus travel-related names (International Consolidated Airlines Group SA (LSE: IAG)) and Rolls-Royce Holdings PLC (LSE: RR). ).
Market analyst Michael Huson said markets are being stimulated by hopes that the US Federal Reserve will not raise interest rates as quickly as previously feared.
This followed a lower-than-expected update from the University of Michigan’s inflation expectations survey, removing previous gains that led the Fed to focus on raising interest rates by 75 basis points at its June meeting.
“This market reaction helps to prove that it is sometimes unwise to allow monetary policy to be governed by a single point of data,” Huson said.
The main stock indexes of Wall Street are also higher by about 2%.
15:00: US stocks rise, but cricket players fall
Markets in the United States opened higher than expected.
The Dow Jones 30 stock index rose 379 points (1.2%) to 31,056, while the S&P 500 was 55 points (1.4%) more stable at 3,851.
In London, the FTSE 100 is slowly making a profit in a way that English cricketers in Heddingley are not today, with a known breakdown in wadding.
The index rose by 127 points (1.8%) to 7148.
14:10: Miners slow down Footsie’s progress
London’s leading stock index is doing its best, despite a lack of enthusiasm for the heavily weighted mining sector.
The FTSE 100 index rose 113 points (1.6%) to 7133 despite mining giants such as Glencore PLC (LSE: GLEN), Rio Tinto PLC (LSE: RIO), Fresnillo PLC (LSE: FRES) and Anglo American PLC (LSE). : AAL) all lose positions.
Against this background, the global investment trading platform Capital.com issued a press release in which it revealed that 38% of the transactions on its platform during this quarter were “short” transactions, ie. bet that the company’s share price will fall.
The share of short trades is 15% higher compared to the same period last year, although it is not clear from the press release whether it is really 15% higher – ie. three twenties – or 15 percentage points (ie 38% compared to 23%).
“Given the size of the market downturns – in all types of asset classes this year – it may not be surprising that more traders are choosing to sell in short positions in order to position themselves in order to benefit from further weakness in market or even hedge other investments, ”said David Jones, chief market strategist at Capital.com.
“Once again, the NASDAQ 100 proved to be the most popular market among retailers this week. Volatility always attracts traders – and we still continue to see significant fluctuations in global stock indices. Only last week, the NASDAQ traded to its lowest levels since November 2020. The last few days have seen something like a rebound, but at the moment the opinion seems divided whether it is a sustainable recovery or just another bounce of a dead cat before the market slides down one more time.
“The area in which the biggest jump in short deals is observed is goods. This may suggest – at least for some traders – there is a level of comfort in trying to rise to the top of the large commodity market, which has survived for at least the last few years. Of course, a drop in commodities would be welcome in many economies around the world, as it would help slow inflation, “he added.
13.30: US stocks will open higher
US stocks were expected to open higher on Friday with softer economic data from the world’s largest economy, which is helping investors reduce some of their most aggressive inflation expectations.
The surge in the stock market in recent weeks has also led traders to lucrative deals and appears to support major indexes as another volatile trading week ends.
Futures for the Dow Jones Industrial Average rose 0.8% in pre-market trading, while those for the broader S&P 500 rose 0.7% and contracts for the Nasdaq-100 rose 0.9%.
“Futures in the United States and Europe are trading higher because of a bargain hunt,” said Naim Aslam, chief market analyst at avatrade.com.
“The Nasdaq index, which has driven markets down in recent months and quarters, has found some love among investors and traders, and it is the Nasdaq index that has actually pulled US markets from negative to positive territory. one, “he added.
Some sectors have indeed been affected in recent weeks and are ripe for bargain hunters.
“There is no doubt that the entire technology sector is selling better and there are some great bargains, and traders are struggling to resist, especially when stocks like Meta and Netflix have fallen more than 70% from their last highs,” Aslam said.
Economic data was recently below expectations. While many investors still believe that the United States will fall into recession in the coming months, some parts of the market now hope that softer economic data could mean that inflation may also begin to decline.
“In terms of economic figures, yesterday we saw PMI in US manufacturing fall off a cliff. It has become even clearer that economic growth is slowing down and it is only a matter of time before we see a recession ahead, “Aslam said.
In the energy markets, WTI crude futures rose 1.2% to $ 105.51 a barrel, and Brent crude futures rose 1.1% to $ 111.26.
12.35pm: Tone-up for Footsie
The FTSE 100 added more than a hundred points or 1.55% to 7129, almost back to where it was before Wednesday’s sell-off.
The industries are leading, with the chemical group Croda International PLC (LSE: CRDA) leading the list, followed by electronic components supplier RS Group PLC and health and safety product supplier Halma PLC (LSE: HLMA).
European stock markets are also higher, and as Asia ends up almost everywhere green, North America is poised to join today’s day of risk.
Dow Jones and S&P 500 index futures rose 0.7% in the open, while contracts for the Nasdaq-100 rose 0.9%.
Fresh economic data is pushing investors to cut back on some of their most aggressive inflation expectations, while the wave of stock market declines in recent weeks has also brought bargain hunters to a close at the end of another volatile trading week.
“Futures in the United States and Europe are trading higher as we search for bargains,” said Naim Aslam, chief market analyst at AvaTrade.
“The Nasdaq index, which has driven markets down in recent months and quarters, has found some love among investors and traders, and it is the Nasdaq index that has actually pulled US markets from negative to positive territory. one, “he added.
Some sectors have indeed been affected in recent weeks and are ripe for bargain hunters.
“There is no doubt that the entire technology sector is selling better and there are some great bargains, and traders are struggling to resist, especially when stocks like Meta and Netflix have fallen more than 70% from their last highs,” Aslam said.
As recent economic data is below expectations, he said there are investors who believe the US will fall into recession in the coming months, while others hope that softer economic data could mean that inflation may also begin. to decrease.
“In terms of economic figures, yesterday we saw PMI in US manufacturing fall off a cliff. It has become even clearer that economic growth is slowing down and it is only a matter of time before we see a recession ahead, “Aslam said.
In the energy markets, crude oil futures rose, with WTI up 1.2% to $ 105.51 a barrel and Brent up 1.1% to $ 111.26.
10.27 am: Household incomes are falling even more
FTSE continues to rise, but people are still considering the lowest levels of consumer confidence since the 1970s, following data earlier.
In addition to GfK’s confidence figures and ONS retail sales data, this morning there was a tracking of Asda’s earnings for May, which registered a seventh consecutive monthly decline.
The average discretionary household income in the United Kingdom fell by £ 42 a week from the same period last year, with the average purchasing power for May at £ 202 a month, from £ 205 last month, supporting research on rising prices. food from Kantar earlier this week.
The deterioration of financial positions and the additional pressure on household expenditures from rising inflation is highlighted as …
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