Latest news with #UKStocks
Yahoo
03-07-2025
- Business
- Yahoo
FTSE 100 LIVE: Stocks rise while pound and UK bonds recover as Starmer backs Reeves
The FTSE 100 (^FTSE) and European stocks were higher on Thursday while the value of the pound also recovered as prime minister Keir Starmer assured traders that chancellor Rachel Reeves will remain in her role 'into the next election'. It came after government borrowing costs surged after the chancellor was seen shedding tears in the Commons on Wednesday while the prime minister failed to back her when questioned at the despatch box. The 10-year gilt yield, a benchmark for the cost of servicing the national debt, surged by nearly 16 basis points to 4.61%, while 30-year yields climbed 19 basis points to 5.42%. Meanwhile, sterling fell by a cent against the US dollar, sliding from $1.3745 to $1.3636, making it the worst-performing major currency in the world at the time, on the back of the news. Christian Kopf, head of fixed income at asset manager Union Investment Group, told BBC Radio 4's Today programme: 'Often we see jitters in the bond market which is caused by external events but yesterday it was different. Stocks: Create your watchlist and portfolio 'It was clearly caused by Prime Minister's Questions and by domestic events in the UK and the movement was very swift and very stark. 'It's about the future of the fiscal rule in the UK. Chancellor Reeves stands for that fiscal rule. Investors were growing concerned about the prospect of very high fiscal deficits that are no longer compliant with the fiscal rule and that would then give rise to higher yields and a weaker pound sterling. 'So people are really concerned about the consistency of economic policymaking in the UK.' Starmer has since reassured traders of Reeves' position. "She and I work together, we think together. In the past, there have been examples — I won't give any specific — of chancellors and prime ministers who weren't in lockstep. We're in lockstep," he said. The yield on UK 30-year bonds has dipped by 0.8% in early trading, to 5.361%. UK 10-year bond yields have also dipped by around three basis points, to 4.55% from 4.58% last night. These moves suggests the bond markets are relieved that the PM is standing by Reeves, easing concerns that a new chancellor might be less committed to the current fiscal rules. London's benchmark index (^FTSE) was 0.5% higher in early trade. Germany's DAX (^GDAXI) rose 0.4% and the CAC (^FCHI) in Paris headed 0.3% into the green. The pan-European STOXX 600 (^STOXX) was up 0.4%. Wall Street is set for a positive start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green. The pound was 0.1% against the US dollar (GBPUSD=X) at 1.3665. Follow along for live updates throughout the day: Wednesday's slump in the pound, despite surging borrowing costs, was reminiscent of the Liz Truss-era meltdown in bond markets, analysts have said. Will Walker-Arnott, a director at wealth manager Charles Stanley said on Thursday: Meanwhile, Andrew Wishart, economist at Berenberg Bank said that 'investors probably saved the chancellor'. He said: The value of the pound recovered on Thursday as Keir Starmer assured traders that chancellor Rachel Reeves will remain in her role 'into the next election'. It came after government borrowing costs surged after the chancellor was seen shedding tears in the Commons on Wednesday while the prime minister failed to back her when questioned at the despatch box. The 10-year gilt yield, a benchmark for the cost of servicing the national debt, surged by nearly 16 basis points to 4.61%, while 30-year yields climbed 19 basis points to 5.42%. Meanwhile, sterling fell by a cent against the US dollar, sliding from $1.3745 to $1.3636, making it the worst-performing major currency in the world at the time, on the back of the news. Christian Kopf, head of fixed income at asset manager Union Investment Group, told BBC Radio 4's Today programme: Starmer has since reassured traders of Reeves' position. "She and I work together, we think together. In the past, there have been examples – I won't give any specific – of chancellors and prime ministers who weren't in lockstep. We're in lockstep," he said. The yield on UK 30-year bonds has dipped by 0.8% in early trading, to 5.361%. UK 10-year bond yields have also dipped by around three basis points, to 4.55% from 4.58% last night. These moves suggests the bond markets are relieved that the PM is standing by Reeves, easing concerns that a new chancellor might be less committed to the current fiscal rules. Asian shares were mixed overnight as investors braced for a key US jobs report and waited on the passage of US president Donald Trump's tax cutting bill in Congress. The Nikkei (^N225) rose almost 0.1% on the day in Japan, while the Hang Seng (^HSI) fell 0.8% in Hong Kong. The Shanghai Composite ( was 0.2% up by the end of the session as data showed China's services activity expanded at the slowest pace in nine months in June. In South Korea, the Kospi (^KS11) added 1.3% on the day despite president Lee Jae Myung saying that tariff negotiations were looking difficult and that he cannot confirm if talks can conclude by next Tuesday. Across the pond on Wall Street, US stocks climbed overnight to close at new record highs after president Donald Trump announced that the US has struck a trade deal with Vietnam, including a 20% tariff on exports to America. That is lower than the 46% tariff that had been threatened, but still much higher than previous rates. Vietnamese shares rose to their highest since April 2022. The local dong currency, however, dipped to a record low of 26,229 per dollar. The Dow Jones (^DJI) closed flat at 44,484.42, the S&P 500 (^GSPC) rose 0.5%, finishing at 6,227.42, and the tech-heavy Nasdaq (^IXIC) rose 0.9% to end at 20,393.13. In the bond market, the yield on benchmark 10-year US Treasury notes rose to 4.284% from 4.251% on Tuesday night. Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy. To the day ahead we have US data releases including the jobs report for June, the ISM services index for June, the weekly initial jobless claims, as well as the trade balance and factory orders for May. Otherwise we'll get the final services and composite PMIs for June in the US and Europe. From central banks, we'll hear from the Fed's Bostic, and the ECB will publish the account of their June meeting. Here's a quick snapshot at what's on the agenda: 7am: Trading updates: Currys, Watches of Switzerland 9.30am: UK service sector PMI for June 10am: OECD Economic Survey of the European Union and Euro Area 1.30pm: US non farm payrolls, employment report for JuneWednesday's slump in the pound, despite surging borrowing costs, was reminiscent of the Liz Truss-era meltdown in bond markets, analysts have said. Will Walker-Arnott, a director at wealth manager Charles Stanley said on Thursday: Meanwhile, Andrew Wishart, economist at Berenberg Bank said that 'investors probably saved the chancellor'. He said: The value of the pound recovered on Thursday as Keir Starmer assured traders that chancellor Rachel Reeves will remain in her role 'into the next election'. It came after government borrowing costs surged after the chancellor was seen shedding tears in the Commons on Wednesday while the prime minister failed to back her when questioned at the despatch box. The 10-year gilt yield, a benchmark for the cost of servicing the national debt, surged by nearly 16 basis points to 4.61%, while 30-year yields climbed 19 basis points to 5.42%. Meanwhile, sterling fell by a cent against the US dollar, sliding from $1.3745 to $1.3636, making it the worst-performing major currency in the world at the time, on the back of the news. Christian Kopf, head of fixed income at asset manager Union Investment Group, told BBC Radio 4's Today programme: Starmer has since reassured traders of Reeves' position. "She and I work together, we think together. In the past, there have been examples – I won't give any specific – of chancellors and prime ministers who weren't in lockstep. We're in lockstep," he said. The yield on UK 30-year bonds has dipped by 0.8% in early trading, to 5.361%. UK 10-year bond yields have also dipped by around three basis points, to 4.55% from 4.58% last night. These moves suggests the bond markets are relieved that the PM is standing by Reeves, easing concerns that a new chancellor might be less committed to the current fiscal rules. Asian shares were mixed overnight as investors braced for a key US jobs report and waited on the passage of US president Donald Trump's tax cutting bill in Congress. The Nikkei (^N225) rose almost 0.1% on the day in Japan, while the Hang Seng (^HSI) fell 0.8% in Hong Kong. The Shanghai Composite ( was 0.2% up by the end of the session as data showed China's services activity expanded at the slowest pace in nine months in June. In South Korea, the Kospi (^KS11) added 1.3% on the day despite president Lee Jae Myung saying that tariff negotiations were looking difficult and that he cannot confirm if talks can conclude by next Tuesday. Across the pond on Wall Street, US stocks climbed overnight to close at new record highs after president Donald Trump announced that the US has struck a trade deal with Vietnam, including a 20% tariff on exports to America. That is lower than the 46% tariff that had been threatened, but still much higher than previous rates. Vietnamese shares rose to their highest since April 2022. The local dong currency, however, dipped to a record low of 26,229 per dollar. The Dow Jones (^DJI) closed flat at 44,484.42, the S&P 500 (^GSPC) rose 0.5%, finishing at 6,227.42, and the tech-heavy Nasdaq (^IXIC) rose 0.9% to end at 20,393.13. In the bond market, the yield on benchmark 10-year US Treasury notes rose to 4.284% from 4.251% on Tuesday night. Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy. To the day ahead we have US data releases including the jobs report for June, the ISM services index for June, the weekly initial jobless claims, as well as the trade balance and factory orders for May. Otherwise we'll get the final services and composite PMIs for June in the US and Europe. From central banks, we'll hear from the Fed's Bostic, and the ECB will publish the account of their June meeting. Here's a quick snapshot at what's on the agenda: 7am: Trading updates: Currys, Watches of Switzerland 9.30am: UK service sector PMI for June 10am: OECD Economic Survey of the European Union and Euro Area 1.30pm: US non farm payrolls, employment report for June
Zawya
26-06-2025
- Business
- Zawya
UK shares gain as investors assess company news, economic data
UK shares edged higher on Thursday, with the midcap index hitting a two-week peak as investors digested a mixed bag of corporate results and mulled the outlook for interest rates after data indicated softening consumer spending. The internationally focused FTSE 100 rose 0.4% by 1100 GMT, while the domestically focused midcap index gained 0.6%. Traders also scrutinised Shell's latest comments after the oil giant denied reports of ongoing talks to acquire rival BP. Shares in both energy companies traded marginally higher in the morning. Industrial and precious metal miners led sectoral gains, tracking higher mineral prices as a weaker dollar made resources cheaper for holders of other currencies. Fresnillo, Antofagasta, Anglo American and Endeavour Mining each added over 2%. Car distributor Inchcape gained 6.2% to top the midcap FTSE index after maintaining fiscal-year outlook through cost-cutting measures that offset U.S. tariffs and increased competition. The midcap index has outperformed the FTSE 100 this quarter and is on track for its biggest quarterly rise since late 2020. Analysts note that domestically focused companies have been relatively insulated from trade uncertainties, while the UK remains among the few countries to have signed a trade deal with the United States. On the data front, British retail sales slumped this month and expectations within the industry for July also deteriorated, a Confederation of British Industry survey showed. Recent data reports have signalled a softening economy, and traders are now pricing in a 25 basis point Bank of England rate cut in September, according to LSEG data. Among other stocks, Associated British Foods rose 1.1% after the food retailer said it would close the UK's largest bioethanol plant by September unless the government provides support — potentially the first casualty of Britain's tariff deal with the United States. Greeting card retailer Moonpig slumped 9.6% to touch a more than two-month low after forecasting slower earnings growth and announcing its CEO's departure. Outsourcing firm Serco rose 2% on expectations of North American market driven first-half growth due to a high volume of defence contracts from last year. Consultancy Next 15 Group slumped 25% after warning full-year 2026 profit would significantly miss market expectations. (Reporting by Twesha Dikshit; Editing by Tasim Zahid)
Reuters
26-06-2025
- Business
- Reuters
UK shares gain as investors assess company news, economic data
June 26 (Reuters) - UK shares edged higher on Thursday, with the midcap index hitting a two-week peak as investors digested a mixed bag of corporate results and mulled the outlook for interest rates after data indicated softening consumer spending. The internationally focused FTSE 100 (.FTSE), opens new tab rose 0.4% by 1100 GMT, while the domestically focused midcap index <.FTMC> gained 0.6%. Traders also scrutinised Shell's (SHEL.L), opens new tab latest comments after the oil giant denied reports of ongoing talks to acquire rival BP (BP.L), opens new tab. Shares in both energy companies traded marginally higher in the morning. Industrial (.FTNMX551020), opens new tab and precious metal miners (.FTNMX551030), opens new tab led sectoral gains, tracking higher mineral prices as a weaker dollar made resources cheaper for holders of other currencies. Fresnillo (FRES.L), opens new tab, Antofagasta (ANTO.L), opens new tab, Anglo American (AAL.L), opens new tab and Endeavour Mining (EDV.L), opens new tab each added over 2%. Car distributor Inchcape (INCH.L), opens new tab gained 6.2% to top the midcap FTSE index after maintaining fiscal-year outlook through cost-cutting measures that offset U.S. tariffs and increased competition. The midcap index has outperformed the FTSE 100 this quarter and is on track for its biggest quarterly rise since late 2020. Analysts note that domestically focused companies have been relatively insulated from trade uncertainties, while the UK remains among the few countries to have signed a trade deal with the United States. On the data front, British retail sales slumped this month and expectations within the industry for July also deteriorated, a Confederation of British Industry survey showed. Recent data reports have signalled a softening economy, and traders are now pricing in a 25 basis point Bank of England rate cut in September, according to LSEG data. Among other stocks, Associated British Foods (ABF.L), opens new tab rose 1.1% after the food retailer said it would close the UK's largest bioethanol plant by September unless the government provides support — potentially the first casualty of Britain's tariff deal with the United States. Greeting card retailer Moonpig (MOONM.L), opens new tab slumped 9.6% to touch a more than two-month low after forecasting slower earnings growth and announcing its CEO's departure. Outsourcing firm Serco (SRP.L), opens new tab rose 2% on expectations of North American market driven first-half growth due to a high volume of defence contracts from last year. Consultancy Next 15 Group (NFGN.L), opens new tab slumped 25% after warning full-year 2026 profit would significantly miss market expectations.
Bloomberg
25-06-2025
- Business
- Bloomberg
To Buy British, Think Bonds and Not Stocks
It's not often that UK stocks are singled out as a " favorite geopolitical hedge," as Citigroup Inc. strategists boldly stated last week. So perhaps the elegant stance would be to simply take the rare praise when it's so kindly offered. However, Citi's Beata Manthey pointed to the wrong asset class. UK equities are hovering near an all-time high and seem incapable of making the next leap higher. Instead, a better alternative might be sterling corporate bonds, which offer juicy yields and better downside protection. The main FTSE 100 index has risen 8% this year, and twice that in dollar-equivalent terms. That looks great versus a less-than 2% gain for the S&P 500 index. Nonetheless, it's only half the stellar gains seen in several euro indexes, and the more domestically representative FTSE 250 index is up less than 3%. But a longer perspective is needed. Despite a great first half, European gains remain puny versus the mighty US equity market, which has nearly doubled since the start of 2020, versus a 28% gain for the Stoxx 600 index, and just 16% for the moribund FTSE. It's all about potential earnings growth, or the lack of it, as UK equities tread water with the sorry state of the economy.
Reuters
23-06-2025
- Business
- Reuters
UK shares flat as Israel-Iran conflict rages on, dealmaking in focus
June 23 (Reuters) - UK shares started the week on a lacklustre note as investors looked for any signs of escalation in the ongoing Middle East conflict, while instruments maker Spectris surged after agreeing to a takeover deal by private equity firm Advent. The internationally exposed FTSE 100 index (.FTSE), opens new tab and the domestically focussed midcap index (.FTMC), opens new tab were both flat on Monday by 1010 GMT. Investors braced for Iran's response to U.S. airstrikes on some of the country's nuclear facilities over the weekend, as they grappled with the likelihood of geopolitical tensions intensifying in a region that is crucial to global oil supply - particularly the Strait of Hormuz. Oil and gas (.FTNMX601010), opens new tab led sectoral gains, tracking crude prices that were close to five-month highs. Energy giants BP (BP.L), opens new tab and Shell (SHEL.L), opens new tab were up about 1% each, while Harbour Energy (HBR.L), opens new tab gained 2%. Airline stocks including Easyjet (EZJ.L), opens new tab, Wizz Air and British Airways parent International Consolidated Airlines (ICAG.L), opens new tab dropped between 1.1% and 2.3%, hurt by higher crude prices. Markets also kept their focus on the latest set of mergers and acquisitions in the UK, with Spectris' (SXS.L), opens new tab takeover marking the biggest acquisition in Britain this year. Spectris' (SXS.L), opens new tab shares jumped 15.3% and hit a sixteen-month high after the company agreed to a 4.4-billion-pound ($5.9 billion) debt-inclusive takeover deal by private equity firm Advent over a rival proposal from KKR (KKR.N), opens new tab. Primary Health Properties' (PHP.L), opens new tab shares dropped 3.8% and weighed on the broader real estate (.FTNMX351020), opens new tab sector after Assura (AGRP.L), opens new tab backed a 1.78-billion-pound ($2.4 billion) takeover deal by its rival. Shares of Assura were marginally higher in early trading, building on a nearly 30% rise this year. Meanwhile, economic data showed that British business activity slightly grew in June, but worries remained with the conflict in the Middle East. Across the Atlantic, Federal Reserve Chair Jerome Powell is set to face Congress on Tuesday and Wednesday. Traders will keep a keen eye on his outlook for the economy and interest rates.
