Tuesday,27 August 2024 16:34:15

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Tuesday,27 August 2024 at 15:36

UK stocks remained firmer on Tuesday afternoon lifted by index heavyweights BP and Shell as heightened tensions between Israel and Lebanese militant group Hezbollah, along with outages in Libya, saw oil prices back above $80 per barrel. Miners also gained amid rising copper prices.

US stocks were muted as traders awaited Nvidia Corp's results on clues on whether the Artificial Intelligence euphoria that has powered the bull market has run too far.

Nvidia's earnings release on Wednesday stands out as the most significant market catalyst of the week along with a second estimate of US second-quarter GDP. Federal Reserve chair Jerome Powell’s virtual confirmation there will be a rate cut at the next meeting in September means the debate now is whether it will be a 25-basis point or 50-basis point cut.

The pound climbed to its strongest level against the US Dollar in more than two years on the back of support from Friday’s remarks by Federal Reserve Chair Jerome Powell signalling meaningful US rate cuts from next month, and the more cautious comments of Bank of England Governor Andrew Bailey.

Oil prices were weaker but nevertheless traded around the $80 level due to expectations of an imminent interest rate cut by the US Federal Reserve.

Gold prices were flat, consolidating near record highs reached last week, ahead of an inflation report due this week.

In corporate news Bunzl rose to the top of the FTSE 100 after lifting its operating profit guidance for the full year and announcing a £250m share buyback and a double-digit increase in its dividend.

The distribution group that supplies things that companies need to do business but do not actually sell to customers, such as takeaway cups for coffee shops or door mats for hotels and offices, is renowned as being one of the more mundane businesses on the UK market. Its latest set of results excited the market and were a reminder that sometimes boring can be best.

Airline stocks such as Easyjet, Wizz Air and BA owner IAG also flew higher after Ryanair boss Michael O’Leary said fare falls had levelled out.

Markets

the close

FTSE 100 8,347 +0.24%

FTSE 250 21,183 (-0.03%)

DAX 18,701 +0.46%

16:40

Dow Jones 41,241 +0.01%

S&P 500 5,629 +0.23%

NASDAQ 17,780 +0.32%

Fixed Income

UK 10-YR YIELD 3.994

Exchange Rates

GBP/USD 1.323

GBP/EUR 1.185

Commodities

Gold $2,517 +0.01

Brent $80.09 (-1.42%)

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.