Wednesday,28 August 2024 16:36:35

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Wednesday,28 August 2024 at 15:36

UK stocks traded flat on Wednesday afternoon. Banks were weaker amid speculation of a potential windfall tax on the sector. Natwest, Barclays and Lloyds fell as the Financial Times reported that banks could be targeted in the October budget, suggesting that a levy could raise several billions of pounds.

US markets were slightly negative as traders awaited Nvidia Corp's results due after the market close. The market is expecting another round of blockbuster numbers from the chip giant, but a lot will ride on the outlook and guidance from the firm. Investors are gearing up for big swings in Nvidia's shares after the earnings release. Analysts, on average, predict the chipmaker will project revenue growth of more than 70% for the current quarter, with some estimating an even larger surge.

The US Dollar rebounded after a recent run of declines that pushed it to its weakest in more than a year.

Oil prices were weaker as traders largely dismissed the threat of supply disruptions in Libya, which triggered a rally earlier in the week. Soft demand on China and risks of a broader slowdown also weighed.

Gold prices fell on a firmer US Dollar as investors focused on key inflation data from the world's largest economy for clues on the size of the Federal Reserve's potential interest rate cut in September.

In corporate news Klarna, the buy now, pay later lender, has cut more than 1,000 staff partly due to artificial intelligence and plans to shed almost twice that number ahead of a stock market flotation. The Stockholm-based financial technology group, which wrote off the equivalent of £173 million in bad loans in the first half of 2024 as more shoppers using the popular form of credit defaulted on their borrowing, said: ‘Our proven scale efficiencies have been enhanced by our investment in AI, which has driven down operating expenses and improved gross profits.’ – The Times.

Markets

16:30 BST

FTSE 100 8,347 +0.03%

FTSE 250 21,097 (-0.30%)

DAX 5,609 (-0.29%)

16:30 BST

Dow Jones 41,302 +0.12%

S&P 500 5,609 (-0.29%)

NASDAQ 17,577 (-0.99%)

Fixed Income

UK 10-YR YIELD 3.985

Exchange Rates

GBP/USD 1.321

GBP/EUR 1.187

Commodities

Gold $2,506 (-0.72%)

Brent $79.00(-1.03%)

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.