- FTSE 100 closes with 188 points
- US stocks on the rise
- Carnival actions grow day by day
16.51: FTSE closes firmly ahead
The FTSE 100 closed firmly on the rise on Friday as the market decided to rebound decently.
The UK’s largest stock index ended the day, up about 188 points, or 2.68%, to 7,208.
Cruise giant Carnival markedly increased its share on Friday in a sector generally under sustained pressure. Shares rose more than 8% on the day as the company offered a more positive outlook for 2023.
Michael Hewson, chief market analyst at CMC Markets, said: “The cruise industry, like most of the travel industry, has had two difficult years. Before the pandemic in 2019, Carnival’s annual revenue was $ 20.8 billion and does not appear to be approaching much before 2023.
“Today’s second-quarter numbers have seen losses of $ 1.8 billion, bringing first-half losses to $ 3.7 billion.
“First-quarter revenue rose to just over $ 4 billion, of which $ 2.4 billion came in the second quarter, an increase of nearly 50% from the first quarter,” he added.
15.52 h: FTSE in vol
The FTSE 100 is flying and, despite an unstable environment, is up and running for its first positive week after three weeks of falls.
Both the industrial and consumer sectors are leading the rise, with names focused on the United States also doing well, including Ashtead Group PLC at the top of the rankings, with Flutter Entertainment PLC also doing well.
There are 15 blue chips between 4 and 6%, with others like Spirax-Sarco Engineering (LSE: SPX) PLC, Croda, Prudential PLC and Howden Joinery Group (LSE: HWDN) PLC.
Only five of the Footsie are in 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 Hewson said markets are being boosted by the hope that the U.S. Fed will not raise rates as fast as previously feared.
This followed a lower-than-expected update to the University of Michigan’s inflation expectations survey, eliminating previous gains that had caused the Fed to pivot toward a 75 basis point rate hike. at its June meeting.
“This market reaction helps demonstrate that it is sometimes unwise to allow monetary policy to be driven by a single data point,” Hewson said.
Wall Street’s major stock indexes are also all higher, at around 2%.
3pm: The US piles up, but Headingly’s cricketers sink
US markets have opened higher as expected.
The 30-share Dow Jones index rose 379 points (1.2%) to 31,056, while the S&P 500 was 55 points (1.4%) stronger at 3,851.
In London, the FTSE 100 is slowly accumulating profits in a way that English cricketers at Headingley do not do today, with a family collapse underway.
The index rose 127 points (1.8%) to 7,148.
2.10pm: Miners slow down the progress of the Footsie
London’s leading stock index is putting its best footing despite a lack of enthusiasm for the heavily weighted mining sector.
The FTSE 100 index rose 113 points (1.6%) to 7,133 despite mining giants such as Glencore PLC (LSE: GLEN), Rio Tinto PLC (LSE: RIO), Fresnillo PLC (LSE: FRES) and Anglo American PLC (LSE: AAL) losing ground.
In this context, the global investment trading platform Capital.com issued a press release in which it revealed that 38% of the operations of its platform in this quarter have been “short” operations, ie bets to bring the price of a company’s stock down.
The proportion of short transactions was 15% higher than in the same period last year, although in the press release it is not clear whether it is really 15% more, ie three twenties, or 15 percentage points (i.e., 38% versus 23). %)).
“Given the size of the market slides, in all kinds of asset classes this year, it may not be surprising that more traders choose to sell short, perhaps to position themselves to benefit from more weakness. of the market or even to cover other investments “. said David Jones, chief market strategist at Capital.com.
“Once again, the NASDAQ 100 has proven to be the most popular market among traders this week. Volatility always attracts traders, and we still see significant fluctuations in global stock indices. Just last week, the NASDAQ went to its lowest levels since November 2020. The last few days have seen some rebound, but for now, opinion seems divided on whether this is a sustainable recovery or just another rebound from Dead cat before the market.
“The area that has seen the biggest jump in short trades is commodities. This may suggest, at least for some traders, that there is a level of comfort when trying to get to the top of the big “A rise in commodity prices that has persisted for at least the last two years. Of course, a fall in commodities would be welcomed by many economies around the world, as it would help curb rising inflation,” he added. .
1.30pm: US stocks will open on the rise
US equities were expected to open higher on Friday with softer economic data from the world’s largest economy helping investors lower some of their more aggressive inflation expectations.
The series of stock market crashes in recent weeks is also once again highlighting bargain hunters and it looks like it will target major indices as another volatile trading week closes.
Dow Jones Industrial Average futures rose 0.8% in pre-market trading, while broader S&P 500 futures rose 0.7% and Nasdaq-100 contracts rose 0% , 9%.
“US and European futures are trading higher as deals are being sought,” said Naeem Aslam, chief market analyst at avatrade.com.
“The Nasdaq index, which has been pushing markets down over the past few months and quarters, has found some love between investors and traders, and it was the Nasdaq index that pulled US markets from its negative territory to a positive one, “he added.
Some sectors have had a real impact in recent weeks and are ripe for bargain hunters.
“There is no doubt that the entire technology sector has higher overselling, and there are great deals and traders are having a hard time resisting, especially when stocks like Meta and Netflix have dropped more than 70% from their recent highs. “, noted Aslam.
Recently published economic data has been below expectations. While many investors still believe the U.S. will enter a recession in the coming months, now some market sectors hope that softer economic data could mean inflation could also begin to decline.
“In economic terms, we saw yesterday that the numbers of the US manufacturing PMI fell down a cliff. It became even clearer that economic growth is slowing, and it’s only a matter of time before we see the readings. of the recession before us, ”Aslam said.
In the energy markets, WTI crude oil futures rose 1.2% to $ 105.51 a barrel and Brent crude oil futures gained 1.1% to $ 111.26 a barrel.
12.35pm: Ton-up for the Footsie
The FTSE 100 has added more than a hundred points or 1.55% to 7,129, almost returning to where it was before Wednesday’s liquidation.
The industrialists lead the way, with the chemical group Croda International PLC (LSE: CRDA) leading the ranking, followed by the electronic components supplier RS Group PLC and the health and safety products supplier Halma PLC (LSE: HLMA).
European stock markets are also higher, and with Asia almost universally finished in green, North America is poised to join today’s risky day.
Dow Jones and S&P 500 index futures point to gains of 0.7% at the open, while Nasdaq-100 contracts are up 0.9%.
New economic data is causing investors to lower some of their more aggressive inflation expectations, while the stock market crash in recent weeks is also bringing bargain hunters out at the end of another volatile trading week. .
“US and European futures are trading higher as deals are being sought,” said Naeem Aslam, chief market analyst at AvaTrade.
“The Nasdaq index, which has been pushing markets down over the past few months and quarters, has found some love between investors and traders, and it was the Nasdaq index that pulled US markets from its negative territory to a positive one, “he added.
Some sectors have had a real impact in recent weeks and are ripe for bargain hunters.
“There is no doubt that the entire technology sector has higher overselling, and there are great deals and traders are having a hard time resisting, especially when stocks like Meta and Netflix have dropped more than 70% from their recent highs. “, noted Aslam.
With recent economic data below expectations, he said some investors believe the U.S. will enter a recession in the coming months, while others expect softer economic data could mean inflation could also start to pick up. relieve yourself.
“In economic terms, we saw yesterday that the numbers of the US manufacturing PMI fell down a cliff. It became even clearer that economic growth is slowing, and it’s only a matter of time before we see the readings. of the recession before us, ”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 a.m .: Household incomes fall even more
The FTSE continues to rise, but people are still reflecting on the lowest levels of consumer confidence since the 1970s, following previous data.
In addition to GfK’s confidence figures and ONS retail figures, this morning also saw Asda’s revenue track for May, which has seen a seventh consecutive monthly decline.
The average discretionary income of households in the UK fell by £ 42 a week compared to the same period last year, with the average purchasing power in May indicated at £ 202 a month, from £ 205 last month, supporting research into rising Kantar food prices earlier this week. .
The worsening financial positions and additional pressures on household spending due to rising inflation stand out as …