Moving markets today: What’s shaping the FTSE 100 this morning
Moving Markets Today: S&P 500 Hits Record High Despite Big Tech Losses; Nikkei Surges to New High; Oil Steady; Focus on UK Retail Sales and US PPI Data
Stocks in the United States closed higher on Thursday, despite retail sales data showing a larger decline than expected. Japan’s Nikkei made significant gains and approached its all-time high, while the U.S. dollar remained under pressure. Oil prices held steady as the demand outlook remained uncertain. Raphael Bostic, President of the Federal Reserve Bank of Atlanta, stated that more time is needed to assess the possibility of a rate cut. Looking ahead, investors are eagerly awaiting the release of UK retail sales data and the U.S. producer price index (PPI) later in the day. Here are five key takeaways for your day.
Labour Triumphs in Kingswood By-Election
In Kingswood, the Labour Party won a by-election, dealing a blow to the Conservatives ahead of a potential national vote. This loss for Prime Minister Rishi Sunak’s Conservatives seemed to be the first of two expected defeats on Friday, with Labour also anticipating success in another by-election in Wellingborough. While by-elections may not always accurately predict nationwide results, these outcomes signal growing dissatisfaction with the Conservative Party. Labour secured 11,176 votes, while the Tories received 8,675 votes, and Reform UK came in third with 2,578 votes.
Bostic Says Fed Needs More Time to Weigh Rate Cut Prospect
Raphael Bostic, President of the Federal Reserve Bank of Atlanta, said that although the U.S. central bank has made considerable headway in reducing inflation pressures, he is not yet inclined to propose interest rate cuts due to ongoing risks, Reuters reported. “We will likely soon contemplate the appropriate time for monetary policy to become less restrictive,” Bostic said. “Right now, a strong labour market and macroeconomy offer the chance to execute these policy decisions without oppressive urgency,” he added.
Similarly, Kazuo Ueda, Governor of the Bank of Japan, stated on Friday that the central bank will evaluate the maintenance of its array of monetary easing measures, including negative interest rates, as it nears the sustained achievement of its inflation target, Reuters reported. “Based on our economic and price outlook as of now, Japan’s monetary conditions will likely remain accommodative even after ending negative rates,” Ueda told parliament.
Jeff Bezos Offloads $2 Billion in Amazon Shares for Third Consecutive Week
Amazon’s founder, Jeff Bezos, has recently sold an additional $2 billion worth of shares in the company. This sale adds to the total value of his recent divestments, which now amounts to around $6 billion, the Financial Times reported. According to reports, Bezos sold 12 million more shares in Amazon on both Tuesday and Wednesday. This latest sale represents the third consecutive instance in which Bezos has sold a block of 12 million shares since the start of last week.
What’s Coming Up
Market participants are eagerly awaiting the UK retail sales data. As the North American trading session begins, traders will closely monitor important U.S. economic indicators including the Producer Price Index (PPI), Housing Starts, and the Preliminary Michigan Consumer Sentiment Index. Additionally, speeches by members of the Federal Open Market Committee (FOMC) will be a focus for market watchers during this time.
Wall Street Closes Higher; Japanese Stocks Approach Record Levels
The S&P 500 index climbed by 0.58%, closing at 5,029.67 points. Meanwhile, the Nasdaq Composite saw a 0.30% increase, reaching 15,906.17. The Dow Jones Industrial Average also experienced a positive movement, rising by 0.91% to settle at 38,774.73 points. Alphabet faced a decline of 2.17% after Third Point, an investment firm, decided to divest its stake in the company. Conversely, CBRE Group witnessed an impressive surge of 8.5% following its forecast of annual profit exceeding expectations, consequently boosting the S&P 500 real estate sector. Wells Fargo also made headlines with a notable 7.2% jump, following the termination of a 2016 consent order by the U.S. Office of the Comptroller of the Currency related to the bank’s sales practices misconduct.
In Asia, Japan’s Nikkei 225 index edged closer to its historical peak on Friday, rising by as much as 1.9% to trade at 38,865 during the morning session. This index had previously hit an all-time intraday high of 38,957. Japan’s Topix index saw a 1% increase. Hong Kong’s Hang Seng index also added 0.5%, while South Korea’s Kospi gained 0.7%. In the bond market, the yield on the benchmark 10-year notes remained relatively steady at 4.2496%. Two-year Treasury yields saw a slight uptick of 2 basis points to 4.5930%. The dollar index stood at 104.36. Oil prices showed mixed movements. Brent crude eased by 0.2% to $82.73, while U.S. crude edged 0.1% lower to $77.98 per barrel. The spot gold price remained stable at $2,003.09.