The latest updates on the FTSE 100 and London’s financial markets from City A.M.’s newsroom in the heart of the City of London.
Overnight, major US indices fell sharply: the Dow Jones dropped 1.35 per cent to 38,596.98, the S&P 500 decreased by 1.23 per cent to 5,147.21, and the Nasdaq Composite slid 1.4 per cent to 16,049.08 points.
Notably, the technology sector within the S&P 500 saw a notable 1.7 per cent decline, while defense-related companies like Lockheed Martin gained.
Asian markets experienced a retreat, following Wall Street’s decline. Tokyo’s Nikkei 225 and Hong Kong’s Hang Seng Index recorded losses, influenced by a stronger yen and anticipation of the U.S. nonfarm payrolls report.
Trading activity was subdued due to a holiday in China.
Oil prices rose for the second consecutive week, driven by geopolitical tensions in Europe and the Middle East, tightening supply concerns, and optimism about global fuel demand growth.
Brent crude and US West Texas Intermediate crude reached their highest levels since October.
Bank of Japan Governor Kazuo Ueda suggested the possibility of a rate hike if the yen’s decline significantly affects inflation and wages.
Samsung Electronics anticipates a substantial increase in first-quarter operating profit, attributing it to a robust recovery in memory chip prices.
Market attention is centred on the upcoming US employment data, which is anticipated to provide insights into the labour market and inflation.
Experts predict a decrease in nonfarm payrolls for March, dropping to 200,000 from the previous month’s figure of 275,000, while the unemployment rate is foreseen to remain stable at 3.9 per cent.
Additionally, key releases include the UK house price index and S&P Global’s UK construction sector Purchasing Managers’ Index.
House prices fell one per cent in March, according to the latest data, but strong quarter on quarter growth still suggests property valuations are set for a 2024 rebound.
