Thursday,01 August 2024 08:21:51

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Thursday,01 August 2024 at 07:19

UK & European stocks rose at the open following strong gains on Wall Street after Fed chair Jerome Powell put a September rate cut on the table, and as investors eyed an expected rate cut from the Bank of England later in the day.

Asia-Pacific markets were mixed, after comments from U.S. Federal Reserve Chair Jerome Powell indicated a rate cut in September if inflation data remained “encouraging.”

Oil prices rose in early Asian trading, extending strong gains in the previous session after the killing of a Hamas leader in Iran raised the threat of a wider Middle East conflict and on signs of strong oil demand in the U.S.

Gold prices climbed to a two-week high as U.S. Federal Reserve Chair Jerome Powell opened the door to cutting interest rates as early as September.

In corporate news, Barclays reported a return on tangible equity (RoTE) of 11.1% for the first half, alongside announcing £1.2bn in capital distributions to shareholders.

The FTSE 100 bank also increased its 2024 net interest income guidance to around £11bn, driven by higher interest rates and improved deposit dynamics.

Despite a slight year-on-year decline in group income and an increase in operating expenses, Barclays maintained its key financial targets, including a CET1 ratio of 13.6% and a cost-to-income ratio of around 63%.

Markets

08:15

FTSE 100 8,387 +0.23%

FTSE 250 21,595 (-0.01%)

DAX 18,430 (-0.42%)

THE CLOSE

Dow Jones 40,842 +0.24%

S&P 500 5,522 +1.58%

NASDAQ 17,599 +2.64%

Fixed Income

UK 10-YR YIELD 3.97

Exchange Rates

GBP/USD 1.279

GBP/EUR 1.183

Commodities

Gold $2,441 (-0.24%)

Brent $81.15 (-0.37%)

Important - No news or research item should be construed as a recommendation to trade. The inclusion of securities within this report does not necessarily imply their suitability for individual portfolios or situations in respect of which further advice should be sought. Information contained in this report has been compiled from sources believed to be reliable but is not warranted to be accurate or complete.