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Stocks on the FTSE 100 were edging higher in early trading with market commentary focusing on recent softness in the Greenback against its Asian peers.
In particular, some economists were highlighting how it had failed to benefit from recent stronger-than-expected US data.
So what did that imply for the Federal Reserve, who´s next policy decision was scheduled for the day after?
“With inflation expected to move further above the Fed’s target lifted by tariff hikes, the labour market will need to loosen to provide a green light for the Fed to cut rates as much as the market is expecting,” said Lee Hardman at MUFG.
As of 0858 GMT, the FTSE 100 was edging up by 17 points or 0.19% to 8,613.18, while the second-tier index was ahead by 0.44% to 20,328.29.
Gold futures meanwhile were rallying by 1.72% to $3,379.30/oz. on COMEX, possibly pushed higher too by a heightening in tensions in the Middle East, as well as US dollar softness.
Worth noting, in the background there was a growing number of headlines around corporate profit warnings on either side of the Atlantic as a result of US trade tariffs.
On tap for Tuesday was a stream of Purchasing Managers’ Indices for services sector activity in euro area countries and the UK.
In the case of the UK, S&P Global‘s services PMI was forecast to have remained unchanged from the month before at 48.2.
Doordash delivers the goods
Online food delivery company Deliveroo said on Tuesday that it has reached an agreement with US rival DoorDash on the terms of a recommended final cash offer, with its American rival set to pay £2.9bn for the consolidation.
Intertek said it had agreed to acquire Brazil-based TESIS, a provider of building products testing and assurance services, for an undisclosed sum. The company on Tuesday said the deal represented an “attractive opportunity” to expand its building & construction quality assurance business into Brazil’s construction industry, which is valued at $120bn and is forecast to grow at 4.8% per annum to 2033.
Chemicals business Synthomer has agreed to divest William Blythe, its inorganic chemistry business, to its management team and H2 Equity Partners for £30.0m. Synthomer said on Tuesday that the sale of William Blythe, which was conditional on certain customary closing conditions, was expected to complete at the end of May, with net proceeds of the disposal to be used to reduce net debt.
AstraZeneca announced on Tuesday that the European Commission has approved ‘Calquence’, or acalabrutinib, combined with bendamustine and rituximab, for previously untreated mantle cell lymphoma (MCL) in adults ineligible for stem cell transplant. The FTSE 100 pharmaceuticals giant said the approval was based on phase three results from the ‘ECHO’ trial showing the combination reduced the risk of disease progression or death by 27% compared to chemoimmunotherapy alone, extending median progression-free survival to 66.4 months.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Wheaton Precious Metals Corp. | +3.26% | +200.00 | 6,340.00 |
| 2 |  |
Fresnillo | +2.66% | +27.00 | 1,042.00 |
| 3 |  |
British American Tobacco Plc | +2.60% | +84.00 | 3,309.00 |
| 4 |  |
Sainsbury (j) Plc | +2.58% | +6.80 | 270.20 |
| 5 |  |
Tesco Plc | +2.05% | +7.60 | 378.60 |
| 6 |  |
Diageo Plc | +1.46% | +31.00 | 2,151.00 |
| 7 |  |
Imperial Brands Plc | +1.37% | +42.00 | 3,116.00 |
| 8 |  |
Admiral Group Plc | +1.17% | +38.00 | 3,296.00 |
| 9 |  |
United Utilities Group Plc | +1.12% | +12.50 | 1,127.50 |
| 10 |  |
Sse Plc | +1.03% | +17.50 | 1,709.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Anglo American Plc | -5.10% | -109.00 | 2,027.00 |
| 2 |  |
Crh Plc | -4.12% | -304.00 | 7,076.00 |
| 3 |  |
Standard Chartered Plc | -4.01% | -44.00 | 1,052.50 |
| 4 |  |
Smurfit Westrock Plc | -3.84% | -118.00 | 2,955.00 |
| 5 |  |
Melrose Industries Plc | -3.27% | -14.90 | 441.00 |
| 6 |  |
Wpp Plc | -3.25% | -19.20 | 570.80 |
| 7 |  |
Barclays | -2.44% | -7.35 | 293.70 |
| 8 |  |
Marks And Spencer Group Plc | -2.33% | -8.80 | 369.00 |
| 9 |  |
Pearson Plc | -2.07% | -24.50 | 1,158.00 |
| 10 |  |
Aib Group Plc | -1.93% | -10.00 | 508.00 |
US close: Dow snaps nine-day winning streak
Major indices closed lower on Monday as potential trade talks were firmly in focus throughout the session.
At the close, the Dow Jones Industrial Average was down 0.24% at 41,218.83, while S&P 500 lost 0.64% to 5,650.55 and the Nasdaq composite saw out the session 0.74% softer at 17,844.24.
The Dow closed 98.60 points lower on Monday, taking a small bite out of gains recorded in the previous session.
Heightened hopes that the US would be able to strike a trade deal with major trading partners were in focus on Monday after Beijing stated it was currently evaluating the possibility of starting negotiations with the Trump Administration. Trump, however, later said he has no plans to talk to Chinese President Xi Jinping.
Sentiment also got a lift from a Bloomberg report that alleged the White House was nearing a deal with India after the South Asian nation proposed zero tariffs on steel, auto components and pharmaceuticals on a reciprocal basis, up to a certain amount of imports. However, despite the speculation, the US has yet to announce that it has struck any trade deals with other countries. Trump claimed: “We’re negotiating with many countries, but at the end of this, I’ll set my own deals — because I set the deal, they don’t set the deal.”
The president also authorised government agencies to slap a 100% tariff on films produced abroad, stating that efforts from other nations to attract US film productions was a “national security threat”.
Oil prices were also drawing an amount of investor attention on Monday, with West Texas Intermediate was down 1.97% at $57.14 a barrel after OPEC+ announced that it had agreed to surge production for a second month, hiking output by another 411,000 barrels a day in June. Brent crude futures were down 1.65% at $60.28 per barrel.
On the macro front, S&P Global‘s services purchasing managers index was revised lower in April, down from a preliminary reading of 51.4 to a final print of 50.8, the slowest rate of expansion seen in 17 months.
Elsewhere, the Institute for Supply Management‘s services PMI unexpectedly jumped to 51.6 in April, up from a nine-month low of 50.8 in March and beating market forecasts for a further decline to 50.6.
Looking ahead, the Federal Reserve will kick off its two-day policy meeting on Tuesday, with the central bank expected to make a decision on benchmark interest rates on Wednesday.
Tuesday newspaper round-up: US Treasury Secretary, Profit warnings, Russia
The US treasury secretary attempted to soothe Wall Street on Monday as President Trump rattled markets with a plan to impose 100 per cent tariffs on foreign-made films and a prominent investor said the US brand had been damaged. “It has never been a better time to invest in America,” Scott Bessent told finance leaders gathered at the annual Milken Institute global conference in Beverly Hills, Los Angeles. – The Times
Half of the profit warnings issued last month by UK-listed firms cited tariffs and the impact of global trade disruption. Analysis from accountancy giant EY shows there were 26 warnings in April, up from 21 in the same month last year. Of the 26, 13 cited tariffs. On average, the profit warnings – when companies disclose to investors that they expect profits to fall short of expectations – caused the affected company’s share price to fall by 19 per cent on the day. In the first quarter of the year, 62 profit warnings were issued. – Financial Mail
Britain is secretly preparing for a direct military attack by Russia amid fears that it is not ready for war. Officials have been asked to update 20-year-old contingency plans that would put the country on a war footing after threats of attack by the Kremlin. A classified dossier will set out how the Government would respond to a declaration of war, including bunkers to protect the Cabinet and the Royal family, public service broadcasts and the stockpiling of resources. – Daily Telegraph
The aviation industry is “failing dramatically” in its efforts to tackle its role in the climate crisis, according to a newly formed group of aviation professionals. They say they are torn between their passion for flying and their concern for the planet and are calling for a fundamental transition of the industry, including controlling flight numbers. – Guardian
