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Daily Mail
5 days ago
- Business
- Daily Mail
Footsie hits another record high on hopes of a trade deal between the US and the EU
The FTSE 100 scaled new highs yesterday as hopes of a trade deal between the US and the EU gave global stock markets a lift. With traders also cheering upbeat results from the likes of Reckitt Benckiser and BT – and eyeing potential interest rate cuts this summer – the blue-chip index rose 0.9 per cent, or 76.88 points, to 9138.37. That took gains for the year to close to 12 per cent. 'The FTSE 100 has sprung to life,' said David Morrison, senior market analyst at Trade Nation. 'Having broken above 9000 for the first time ever at the beginning of last week, upside momentum has been building.' The mood has been buoyed by cooling trade tensions around the world following Donald Trump's trade deal with Japan. It is now hoped that the European Union will reach a similar agreement with America – though the terms look set to be worse than those secured by Britain. In what has been hailed as a Brexit dividend, most British exports to the US face tariffs of 10 per cent, compared to the 15 per cent rate that has been secured by Japan and targeted by Brussels. Cooling trade tensions as well as upbeat corporate results have boosted share prices lately. Investors also believe the Bank of England will cut UK interest rates next month. The latest rally came despite a 9.5 per cent slump in the Tesla share price in New York yesterday after boss Elon Musk warned of 'a few rough quarters' ahead. 'European shares marched higher as the positive sentiment generated by the trade deal agreed between the US and Japan continued to permeate the markets,' said AJ Bell investment director Russ Mould. 'The continued momentum came despite a mixed start to the big tech earnings season across the Atlantic, with some well-received corporate results helping to support UK stocks as the FTSE 100 sailed through the 9100 barrier.' Neil Wilson, UK investor strategist at Saxo Markets, said: 'The winning streak continues with the index jumping to a fresh record. Hopeful noises on trade with the EU and the US heading towards a Japan-style 15 per cent tariff rate is enough to support the mood.'
Wall Street Journal
18-07-2025
- Business
- Wall Street Journal
Gold Futures Inch Higher But Rally Loses Steam
1524 GMT – Gold futures rise, though they are on track to end the week slightly lower. Futures are up 0.4% at $3,359.40 a troy ounce, but are 0.1% lower on week. Gold's impressive year-to-date rally seems to be increasingly running out of steam, Commerzbank CBK -0.67%decrease; red down pointing triangle analysts say in a note. Though the U.S. dollar weakened to its lowest level against the euro in four years at the beginning of July, the precious metal traded broadly sideways, analysts write. Sharp increases in the prices of silver, platinum and other precious metals over the same time period indicate traders see little further upside in gold and are looking for alternatives, Commerzbank says. After gold's price increase of nearly 27% year to date, mostly in the first few months of 2025, this is hardly surprising, analysts say. ( 1044 GMT – Gold futures rise, though they remain stuck in narrow range as the market awaits fresh catalysts. Futures are up 0.4% at $3,358.30 a troy ounce, though they remain down 0.2% on week. The precious metal has been broadly rangebound in recent months, with technical trading indicators neutral and offering no clues as to the short-term direction, Trade Nation's David Morrison says in a note. A recovery in the U.S. dollar this month appears to be capping any potential gains for gold for now, Morrison writes. Gold could experience downside pressure if the dollar were to spike higher, a possibility due to large short positions on the currency, Morrison says. A stronger dollar challenges gold's safe-haven characteristics and makes dollar-denominated assets more expensive for international purchasers to buy. (
Yahoo
16-07-2025
- Business
- Yahoo
Pound rises after UK inflation blow
The value of the pound rose in early European trading after an unexpected jump in UK inflation, which complicates the picture for the Bank of England at its next meeting on interest rates. Sterling was up 0.2% against the dollar at $1.3408, although it remained flat against the euro, which was worth 86.7p. David Morrison, analyst at Trade Nation, said: 'Once again, the UK inflation numbers are going in the wrong direction. 'Sterling jumped on the news suggesting that the Bank is going to struggle to justify a rate cut next month.' The annual inflation rate in the UK unexpectedly rose to 3.6% in June from 3.4% in May on higher transport prices, particularly fuel. Read more: UK inflation unexpectedly rises in June on higher fuel prices The Bank of England is still expected to cut interest rates in August but analysts said the case is weakening after the latest inflation figures. Guy Foster, strategist at RBC Brewin Dolphin, said: 'This was unhelpful news for the Bank of England, which wants to cut interest rates to support growth. 'If interest rates don't come down, the government interest bill will be higher and the pressure for higher taxes will become more acute.' The US dollar index ( which tracks the greenback's value against six major currencies, was down by around 0.2% to 98.45 at the time of writing. Gold prices edged higher on Wednesday as a weakening US dollar and easing bond yields provided support, while investors weighed fresh inflation data and continued uncertainty over US trade policy. Gold futures were 0.3% higher at $3,345.80 an ounce, while spot gold was just above the flatline at $3.339.95 per troy ounce after touching a three-week high of 3,385.90 earlier this week. "Many countries are still negotiating with the US on the tariffs. There are still a lot of uncertainties in the market and many are looking for safe havens," Brian Lan, managing director at GoldSilver Central, Singapore, told Reuters. Read more: Bank of England governor warns tariff hikes risk 'fragmenting the world economy' The latest US inflation report, released on Tuesday, showed consumer prices increased in June by the most in five months, driven by higher costs for a range of goods. The data suggests tariffs are beginning to feed through to consumer prices, which could complicate the Federal Reserve's path on interest rates. Despite the uptick in inflation, US president Donald Trump repeated his call for lower borrowing costs, insisting that 'consumer prices were low and the Fed should bring down interest rates now.' Trade tensions remained in focus after Trump threatened on Saturday to impose a 30% tariff on imports from Mexico and the European Union starting 1 August. By Monday, however, the president signalled openness to further negotiations, injecting a dose of uncertainty into already volatile markets. Oil prices rose on Wednesday morning, buoyed by expectations of firm summer demand from the US and China, the world's two largest consumers, though broader concerns over the global economic outlook kept gains in check. Brent (BZ=F) crude rose 0.3% to trade at $68.90 a barrel, while West Texas Intermediate (CL=F) climbed 0.5% to $66.82. Major oil producers have pointed to signs of improving economic momentum in the second half of the year, with recent data from China indicating steady growth. 'Strong seasonal demand is currently providing upward momentum to oil prices, as summer travel and industrial activity peak,' analysts at LSEG said in a note. 'Increased gasoline consumption, especially in the US during the Fourth of July holiday period, has signalled robust fuel demand, helping offset bearish pressures from rising inventories and tariff concerns.' Stocks: Create your watchlist and portfolio However, analysts cautioned that recent price action may reflect technical factors more than fundamental shifts. 'Much of the steadying of crude markets after two volatile sessions resulted from a mild technical correction rather than any significant shift in underlying fundamentals,' said Priyanka Sachdeva, senior market analyst at Phillip Nova. She added: 'Investors should monitor inflation and interest rate expectations in the United States as Trump's continued push for broader tariffs could be inflationary and could dampen fuel demand in the medium term.' In equities, the FTSE 100 (^FTSE) was muted at 8,940 points after climbing over 9,000 points for the first time ever in the previous session.
Yahoo
16-07-2025
- Business
- Yahoo
Pound rises after UK inflation blow
The value of the pound rose in early European trading after an unexpected jump in UK inflation, which complicates the picture for the Bank of England at its next meeting on interest rates. Sterling was up 0.2% against the dollar at $1.3408, although it remained flat against the euro, which was worth 86.7p. David Morrison, analyst at Trade Nation, said: 'Once again, the UK inflation numbers are going in the wrong direction. 'Sterling jumped on the news suggesting that the Bank is going to struggle to justify a rate cut next month.' The annual inflation rate in the UK unexpectedly rose to 3.6% in June from 3.4% in May on higher transport prices, particularly fuel. Read more: UK inflation unexpectedly rises in June on higher fuel prices The Bank of England is still expected to cut interest rates in August but analysts said the case is weakening after the latest inflation figures. Guy Foster, strategist at RBC Brewin Dolphin, said: 'This was unhelpful news for the Bank of England, which wants to cut interest rates to support growth. 'If interest rates don't come down, the government interest bill will be higher and the pressure for higher taxes will become more acute.' The US dollar index ( which tracks the greenback's value against six major currencies, was down by around 0.2% to 98.45 at the time of writing. Gold prices edged higher on Wednesday as a weakening US dollar and easing bond yields provided support, while investors weighed fresh inflation data and continued uncertainty over US trade policy. Gold futures were 0.3% higher at $3,345.80 an ounce, while spot gold was just above the flatline at $3.339.95 per troy ounce after touching a three-week high of 3,385.90 earlier this week. "Many countries are still negotiating with the US on the tariffs. There are still a lot of uncertainties in the market and many are looking for safe havens," Brian Lan, managing director at GoldSilver Central, Singapore, told Reuters. Read more: Bank of England governor warns tariff hikes risk 'fragmenting the world economy' The latest US inflation report, released on Tuesday, showed consumer prices increased in June by the most in five months, driven by higher costs for a range of goods. The data suggests tariffs are beginning to feed through to consumer prices, which could complicate the Federal Reserve's path on interest rates. Despite the uptick in inflation, US president Donald Trump repeated his call for lower borrowing costs, insisting that 'consumer prices were low and the Fed should bring down interest rates now.' Trade tensions remained in focus after Trump threatened on Saturday to impose a 30% tariff on imports from Mexico and the European Union starting 1 August. By Monday, however, the president signalled openness to further negotiations, injecting a dose of uncertainty into already volatile markets. Oil prices rose on Wednesday morning, buoyed by expectations of firm summer demand from the US and China, the world's two largest consumers, though broader concerns over the global economic outlook kept gains in check. Brent (BZ=F) crude rose 0.3% to trade at $68.90 a barrel, while West Texas Intermediate (CL=F) climbed 0.5% to $66.82. Major oil producers have pointed to signs of improving economic momentum in the second half of the year, with recent data from China indicating steady growth. 'Strong seasonal demand is currently providing upward momentum to oil prices, as summer travel and industrial activity peak,' analysts at LSEG said in a note. 'Increased gasoline consumption, especially in the US during the Fourth of July holiday period, has signalled robust fuel demand, helping offset bearish pressures from rising inventories and tariff concerns.' Stocks: Create your watchlist and portfolio However, analysts cautioned that recent price action may reflect technical factors more than fundamental shifts. 'Much of the steadying of crude markets after two volatile sessions resulted from a mild technical correction rather than any significant shift in underlying fundamentals,' said Priyanka Sachdeva, senior market analyst at Phillip Nova. She added: 'Investors should monitor inflation and interest rate expectations in the United States as Trump's continued push for broader tariffs could be inflationary and could dampen fuel demand in the medium term.' In equities, the FTSE 100 (^FTSE) was muted at 8,940 points after climbing over 9,000 points for the first time ever in the previous session.
Yahoo
11-07-2025
- Business
- Yahoo
Pound dips as UK GDP disappoints, tariff worries reverberate
The pound dipped against the dollar on Friday, as new data also showed that the UK economy shrank for a second month in a row, contracting by 0.1% in May according to new data from the ONS. "The disappointing monthly GDP number triggered a sell-off in sterling against both the US dollar and the euro," said David Morrison, senior market analyst at financial services provider, Trade Nation. Read more: FTSE 100 LIVE: London flat and Europe lower on renewed tariff threats for Canada and EU "Yet again, this is another poor piece of UK economic data which can only add to chancellor Rachel Reeves's woes. But it will be next month's quarterly growth lookback, which will be watched closely as investors consider the likelihood of the UK falling back into recession this year." The pound was just above the $1.35 mark, having rallied against the greenback in recent weeks. Traders also digested more movement in the ongoing push by the US to redefine its trading relationships. US president Donald Trump posted a letter to Canadian prime minister Mark Carney on his social media platform Truth Social, telling him that Canadian goods imported to the US would face a 35% tariff starting in August. In an interview with NBC News, Trump also floated 15% to 20% blanket tariffs on most trading partners, higher than the 10% level currently in effect. Investors had remained optimistic on Trump's shift in deadlines, which was originally set for this week, as the US continued to work on deals with major partners, including the EU, Canada, and India. Trump said the EU, in addition to Canada, would be receiving a letter "today or tomorrow." The pound also dipped against the euro, falling 0.2% to 1.158. Gold prices headed higher amid increased uncertainty about global tariffs and a flight to haven assets. Futures prices were trading up 0.5% at $3,342 per troy ounce. Spot prices, meanwhile were up 0.3% to trade around the $3,330 mark. The moves higher came in spite of a steadier dollar — a strong dollar can make buying gold more expensive. Oil prices searched for direction on Friday, steadying after a volatile few weeks. On Friday the International Energy Agency (IEA) said there may be cause for concern about tightness in the market. The IEA said that despite the fact that a supply and demand balance has been pointing to a surplus, there might be less oil available than once thought. Refineries have been ramping up processing to meet summer travel demand, according to Reuters. The IEA expects global supply to rise by 2.1 million barrels per day (bpd) this year, up 300,000 bpd from the previous forecast. World demand will rise by just 700,000 bpd, it said, implying a sizeable surplus. Read more: Trending tickers: Levi Strauss, Delta, Lynas, BIT Mining and BP "The decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals," the agency said in a monthly report. "Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances." Brent crude futures were slightly above the flatline, trading around $66.32 per barrel. West Texas Intermediate was up 0.1%, changing hands around the $66.65 mark. Read more: UK economy shrinks for second month in a row Robinhood doubles down on crypto with its own blockchain, 24/7 trading and tokenised stocks What could trigger a late summer crisis for markets in the third quarter?
