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6 days ago
- Business
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FTSE 100 closes higher after survey shows UK services sector returned to growth
Stocks in London made healthy progress on Wednesday, shrugging off weak US data, after a survey showed the UK services sector returned to growth in May. The FTSE 100 index closed up 14.27 points, 0.2%, at 8,801.29. The FTSE 250 ended 101.23 points higher, 0.5%, at 21,119.01, and the AIM All-Share closed up 0.84 of a point, 0.1%, at 754.35. In European equities on Wednesday, the Cac 40 in Paris rose 0.5%, while the Dax 40 in Frankfurt increased 0.8%. The S&P Global UK services purchasing managers' business activity index rose to 50.9 points in May from 49.0 in April, improving upon the flash reading of 50.2 released late last month, and above the 50.0 no-change threshold. The UK composite PMI also returned to growth with a reading of 50.3 points in May, up from 48.5 in April, also improving on the flash reading of 49.4 points. Rob Wood, at Pantheon Macroeconomics, said the figures show UK growth has 'passed the worst' as President Donald Trump walking back his 'more ruinous tariffs cuts the panic that took hold in April'. In Europe, the Hamburg Commercial Bank eurozone composite PMI edged down to 50.2 points in May from 50.4 in April. The final reading came slightly ahead of the flash estimate of 50.1 points. The HCBO eurozone services purchasing managers index fell to 49.7 points in May from 50.1 in April. It matched the flash estimate from April and came in above the 48.9 points cited by FXStreet. In New York, the Dow Jones Industrial Average was up 0.2% at the time of the London equities close on Wednesday, as was the S&P 500. The Nasdaq Composite was 0.3% higher. Markets on Wall Street climbed despite weak economic data raising fears that tariff uncertainty was hurting the world's largest economy. US private sector employment rose by much less than expected in May, according to numbers from payroll processor ADP. Private sector employment increased by 37,000 jobs in May, slowing from a revised 60,000 in April, and below FXStreet consensus of 115,000. April's total was revised downwards from 62,000. May's figure was the lowest monthly job total from the ADP count since March 2023. 'After a strong start to the year, hiring is losing momentum,' said Nela Richardson, chief economist at ADP. Mr Trump called on Jerome Powell, the chairman of the US central bank, to lower interest rates. 'ADP NUMBER OUT!!! 'Too Late' Powell must now LOWER THE RATE,' Mr Trump wrote on Truth Social. There was mixed news elsewhere as reports showed contrasting fortunes for US economic activity. The S&P Global US services PMI business activity index recorded 53.7 during May, up from a reading of 50.8 in April and comfortably above the 50.0 no-change level. It was also higher than the earlier flash estimate of 52.3. But the Institute for Supply Management Services PMI contracted in May for the first time since June 2024. The ISM Services PMI indicated slight contraction at 49.9, below the 50-breakeven point for only the fourth time in 60 months, and down from 51.6 in April. It was also below FXStreet consensus for a rise to 52.0. Admir Kolaj, economist at TD Economics, said the report was 'disappointing', indicating that even the services sector is 'starting to feel the pinch' from the uncertain trade environment. He said the details of the report 'were not particularly encouraging, with steep drops reported in business activity, new orders, and the backlog of orders'. 'The only bright spot was the improvement in the employment sub-index, which indicates that despite the challenging environment, services-based businesses are still hanging on to their workers and likely doing some moderate hiring,' he added. The pound was quoted up at 1.3566 dollars late on Wednesday afternoon in London, compared to 1.3499 dollar at the close on Tuesday. The euro stood higher at 1.1425 dollars against 1.1385 dollars. The yield on the US 10-year Treasury narrowed sharply to 4.38% from 4.46% on Wednesday. The yield on the US 30-year Treasury narrowed to 4.90% from 4.97%. On the FTSE 100, Babcock International gained 4.3% amid further consideration of the UK defence spending review this week. On the FTSE 250, discoverIE Group jumped 15% after reporting higher profit and an increased dividend. The Surrey-based designer and manufacturer of electronic components for industrial applications said pretax profit was £32.0 million in the financial year ended March 31, up 44% from £22.2 million a year ago. The company recommended a final dividend per share of 8.60p, up 4.2% from 8.25p a year ago. This took the total payout to 12.5p, up 4.2% from 12.0p. But B&M European Retail struggled, falling 14% as its annual results failed to inspire investors. The Luxembourg-based retailer said pretax profit fell 13% to £431 million in the 52 weeks to March 29 from £498 million a year prior, hurt by higher interest and finance costs. B&M, which has 777 stores in the UK and 135 in France, as well as 343 Heron Foods and B&M Express shops, flagged heightened cautiousness to spend among consumers, and 'very subdued' garden spending due to poor weather at the start of its financial year. Russ Mould, at AJ Bell, said the shrinking profits 'frame a poor year for B&M'. 'The discount retailer blamed challenging market conditions, yet its value-led business model should have thrived in a period where consumers were watching their pennies,' he said. The price of gold firmed to 3,374.32 dollars an ounce on Wednesday against 3,349.93 dollars on Tuesday. Brent oil was lower at 64.65 dollars a barrel at the time of the London equities close on Wednesday, compared to 65.73 dollars on Tuesday. The biggest risers on the FTSE 100 were Babcock International, up 44p at 1,066p, Games Workshop, up 530p at 15,950p, Antofagasta, up 56.5p at 1,850p, Hiscox, up 33p at 1,310p and Anglo American, up 53.5p at 2,233.5p. The biggest fallers on the FTSE 100 were Marks & Spencer, down 7.9p at 366.7p, BP, down 6.8p at 358.5p, Haleon, down 6.1p at 399p, Hikma Pharmaceuticals, down 30p at 2,100p, and Centrica, down 2.3p at 161.7p. Contributed by Alliance News 登入存取你的投資組合
Khaleej Times
12-03-2025
- Business
- Khaleej Times
Safe-haven gold demand soars amid global trade woes
Worries about a potential global trade war are driving demand for gold, keeping prices stable amid fluctuating market conditions with some bullish analysts even maintaining their target of $3,300 for the yellow metal. As of 0928GMT on Wednesday, spot gold was steady at $2,919.06 an ounce, while US gold futures inched up slightly to $2,924.80. Investors are anxiously awaiting US inflation data that could sway the Federal Reserve's interest rate decisions, further complicating the economic landscape. In the UAE, gold prices have also seen a rise, with 24-carat gold now priced at Dh351.25 per gram, an increase of Dh0.50, while 22-carat gold has climbed to Dh326.75. Ole Hansen, head of commodity strategy at Saxo Bank, emphasises the ongoing demand for gold, attributing its stability to shallow correction attempts that have not significantly deterred managed money accounts that rely on momentum. 'The outlook for gold remains supportive, especially with recent dollar weakness and limited depth in corrections,' Hansen noted. 'While we recognise the risk of a deeper pullback, we maintain our bullish target of $3,300.' Beyond diversification and safe-haven buying, central bank acquisitions and fiscal debt concerns are also likely to bolster gold's appeal, according to Hansen. FXStreet analysts suggest that gold bulls may need to break through the $2,928-2,930 resistance level to unlock further gains, potentially pushing prices back toward the all-time high of $2,956 recorded on February 24. Conversely, if prices slip below $2,900, support may be found around the $2,880 mark, with further dips leading towards $2,800. Investors are closely monitoring the upcoming US Consumer Price Index (CPI) report, which could have significant implications for interest rates going forward. Should rising price pressures necessitate sustained higher rates from the Fed, gold's allure as a non-yielding asset may diminish. The market is already bracing for inflationary impacts from US tariffs, which have contributed to gold's recent record high. Precious metals experts noted that in recent weeks, gold investment patterns have shown a divergence, with hedge funds and managed money accounts reducing bullish positions, while demand for bullion-backed ETFs remains robust. This contrast highlights differing investment strategies, as ETF investors often take a longer view, seeking refuge from potential stagflation in the US. As the geopolitical landscape shifts and signs of slowing economic growth emerge, traders and investors are increasingly pricing in the risks of stagflation — a challenging combination of low growth, rising unemployment, and escalating inflation. In these turbulent times, gold's enduring appeal as a safe haven is likely to persist, reflecting broader uncertainties in the global economy, experts added.
Yahoo
28-01-2025
- Business
- Yahoo
DeepSeek's AI breakthrough puts new pressure on the Trump administration
This story incorporates reporting from WBUR, FXStreet and emergence of DeepSeek, a Chinese artificial intelligence startup, has generated significant ripples across the global tech industry. The company developed a cutting-edge AI model at a fraction of the cost incurred by American tech giants such as OpenAI and Google. Moreover, DeepSeek disrupted traditional industry dynamics by releasing the model for free, leading to global adoption and leaving a mark on the tech world. This development triggered a sell-off in tech stocks, wiping off over a trillion dollars from the global market value. DeepSeek's rapid ascent signifies a strategic challenge to the dominance long held by U.S. tech firms. As the Chinese company quickly reached the top of app store charts, the American tech landscape found itself at a critical juncture. The surprise element of a foreign competitor gaining momentum so swiftly injected uncertainty into market predictions, affecting investor confidence. However, experts are yet to determine if this will have a sustained impact on market patterns, particularly in the bond markets where the ramifications remain to be seen. Amid these developments, the Trump administration faces heightened pressure to revisit and adapt its artificial intelligence policies. Historic trade policies have consistently played a crucial role in shaping the tech market narrative. The interplay between DeepSeek's rise and Trump's trade strategies have brought these issues to the forefront once again. While previously adopted policies have sometimes been volatile — momentarily diffusing tensions yet still underscoring instability — the unpredictable nature of AI advancements calls for a reassessment of current practices. In an international context, DeepSeek's innovation raises questions for other nations aspiring to strengthen their AI ecosystems. India, for instance, appears to be grappling with resource constraints that might hinder its AI potential. The Indian tech sector's continued reliance on powerful GPUs poses challenges as limits on resources—such as the 50,000 GPU cap—could place burgeoning startups at a disadvantage. Consequently, Indian AI companies like Sarvam AI and CoRover have adapted by leveraging synthetic data for model training rather than pursuing resource-heavy approaches. India and other countries may turn to alternative routes in advancing their AI models due to limitations in procuring technology like Nvidia GPUs. Fine-tuning existing large language models to cater to domestic applications has become a pragmatic strategy. Meanwhile, the ongoing developments across nations could prompt the introduction of more innovative solutions to circumvent the constraints currently posed by limited access to high-performance computing resources. Throughout the U.S., stakeholders in technology and governance acknowledge the urgency of comprehending the complexity and implications of such technological disruptions. As DeepSeek's breakthrough continues to capture attention and drive competition, it may catalyze policy adjustments aimed at maintaining a competitive edge. The strategic response from the U.S. and its allies could play a pivotal role in navigating this evolving landscape. Quartz Intelligence Newsroom uses generative artificial intelligence to report on business trends. This is the first phase of an experimental new version of reporting. While we strive for accuracy and timeliness, due to the experimental nature of this technology we cannot guarantee that we'll always be successful in that regard. If you see errors in this article, please let us know at qi@ For the latest news, Facebook, Twitter and Instagram.
