Monday,05 February 2024 16:35:47

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Monday,05 February 2024 at 16:36

UK and European markets moved slightly lower Monday as investors digested the latest comments from U.S. Federal Reserve Chairman Jerome Powell.

In an interview with on US TV show “60 Minutes” on Sunday, Powell said the central bank would likely move at a considerably slower pace on rate cuts than the market expects.

US Stocks fell as Treasury yields spiked higher on concerns the Federal Reserve may not cut rates as much as expected. Lacklustre results from McDonald’s also dampened investor sentiment.

Oil prices stabilised in early Asian trading on Monday after sharp falls last week, amid continued attempts to reach a ceasefire in the Israel-Palestinian conflict even as the U.S. planned new strikes on Iran-backed groups.

Gold dropped to more than a one-week low on Monday, weighed down by a higher dollar and bond yields after a solid U.S. jobs report and remarks from Federal Reserve officials poured dashed expectations of early interest rate cuts.

In corporate news, shares in Estee Lauder surged as the cosmetics giant announced plans to cut 3% to 5% of its global workforce as they plan to shore up margins squeezed by a reduction in spending by its Chinese customers.

Estee witnessed "a small reduction in market share" during the second quarter in China, CEO Fabrizio Freda said on an analysts call.

Markets

the close

FTSE 100 7,607 (-0.11%)

FTSE 250 19,017 (-0.81%)

DAX 16,897 (-0.12%)

16:40

Dow Jones 38,291 (-0.94%)

S&P 500 4,931 (-0.55%)

NASDAQ 15,529 (-0.63%)

Fixed Income

UK 10-YR YIELD 4.021

Exchange Rates

GBP/USD 1.253

GBP/EUR 1.167

Commodities

Gold $2,022 (-0.84%)

Brent $77.33 (-0.04%)

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.