An upbeat start for the FTSE 100 today has seen particular strength coming from the financials, energy and mining stocks. Despite last week’s somewhat cautious tone, the main UK index looks to be eyeing up another record high following a four-week period that has seen the FTSE punch into fresh territory on a weekly basis. The commodity space looks particularly attractive for traders and investors alike right now, with gold and silver joining copper in reaching fresh record highs. This is good news for the FTSE 100, with its heavy weighting towards miners alongside oil & gas bringing expectations of further upside to come.
On a day largely devoid of major economic news, today sees the Federal Reserve step into the spotlight thanks to appearances from Fed members Bostic, Waller, Barr, Jefferson, and Mester. Coming hot off the heels of last week’s US inflation decline, market expectations for a September cut could be challenged. Nonetheless, with first quarter earnings season drawing towards its conclusion, this week’s Nvidia report should provide perhaps the final fireworks for the wider markets. The tech sector has found itself back in favour over the past week, with the rise into record highs for US indices coinciding with a move back into big tech. With inflation looking likely to rise in the months ahead, equity bulls will hope that Nvidia can provide fresh evidence that the AI gravy train continues to print money for big tech.
All eyes turn to the UK inflation read-out on Wednesday, with a collapse in headline CPI looking likely to grab the attention of the markets given the potential impact that could have on rate cut expectations. Base effects bring expectation of a collapse in headline CPI inflation, with the 1.2% monthly figure from April 2023 dropping out of the annual metric. There are concerns over the speculated 0.7% monthly rise for core CPI, and the Bank of England look likely to have a tough time deciding their next step given the huge disparity that looks to grow between headline (2.3% expected) and core inflation (3.6% expected).
ECB in focus after surprise CPI decline TSMC earnings expected to lift tech-heavy Nasdaq Gold…
Eurozone CPI decline finally drops below 2% target US ISM PMI in focus, while expectations…
Asian fireworks continue, although Nikkei gains likely to reverse on Monday Inflation data sparks EUR…
ZEW declines fail to stifle European stocks Markets growing confident of a 50bp Fed rate…
Mainland European markets on the rise Gold and Silver push higher amid dovish Fed pivot…
European markets follow US stocks higher following CPI release ECB expected to cut by 25bp…