Market Report

UK and European stocks strengthened on Wednesday as weaker-than-expected US jobs data heightened expectations of a Federal Reserve rate cut later this year, along with anticipated cuts by the European Central Bank.

In the US, stocks rose in early trading following weak labour market data that fuelled hopes the Federal Reserve might reduce interest rates later this year.

Overnight, Asia-Pacific markets were mixed as investors evaluated India's election results, where Prime Minister Narendra Modi’s Bharatiya Janata Party fell short of securing an outright majority in the lower house of parliament. Modi is still set for a third term in power after the BJP-led National Democratic Alliance secured 294 seats, more than the 272 needed for the coalition to form the government.

Gold prices edged higher on Wednesday, supported by the weakening U.S. dollar and Treasury yields after private payroll data came in lighter than expected.

Oil prices extended their losses slightly on Wednesday after an industry report showed increases in U.S. crude and fuel stockpiles, raising concerns about demand growth. Oil prices have steadied after significant drops to a four-month low following OPEC's indication that it would ramp up production later this year.

In corporate news, eBay announced it will no longer accept American Express payments, citing the credit card company's “unacceptably high fees.”

Starting August 17, millions of customers will be unable to use their Amex cards on eBay, as the online marketplace pointed out that shoppers have other payment options available. eBay has been increasingly offering buy now, pay later options through Apple Pay, PayPal, and other companies like Klarna and Affirm.

An American Express spokesperson expressed disappointment, stating that eBay’s decision would "limit customers’ payment choices and take away the service, security, and rewards that customers value when paying with American Express."