FTSE 100 Live pre-open
Expectations for the FTSE 100 are negative as a new month and the second half of the year begin on Wednesday, with futures mixed for other markets as a raft of new economic data looms.
London’s blue-chip index has been called 20 points lower, after it failed to hold onto over 120 points yesterday and by the close finished up less than 13 points at 10,497.12.
Overnight, Wall Street wrapped up its best quarter since 2020, with the Dow Jones adding another 0.3% on Friday to close at a fresh high above 52,300, while the Nasdaq jumped 1.5% and the S&P 500 climbed 0.8%.
The S&P 500 gained 15.2% in total return terms over the quarter, helped by the strongest performance from the Philly semiconductor index since it started in the early 1990s.
Asian markets are mixed this morning, with Korea’s Kospi down 1.8% and the Hang Seng down 0.6%, while Japan’s Nikkei has risen 0.7%, with Chinese and Indian benchmarks not far behind.
Jim Reid, strategist at Deutsche Bank says the mood turned after the market keyed in on strong US job openings numbers and hawkish comments from Cleveland Fed President Hammack shortly after their release.
“She said in a CNBC interview that the US may ‘need higher interest rates to bring inflation back down to target’, and when asked about a July hike, said she was keeping an open mind at every meeting.
“So that raised speculation about a rate hike in just four weeks’ time, and market pricing for a July hike ticked up a bit to 34% by the close, up from 32% the previous day.”
This led to a fresh selloff for US Treasuries but a more muted reaction for European government bonds, but not UK gilts, which rose after Bank of England governor Andrew Bailey warned that inflation could still rise later this year.
Fed chief Kevin Warsh and ECB head honcho Christine Lagarde both speak at the Sintra conference today.
Later, many will be leaving work in time to watch England’s first knockout game in the World Cup against DR Congo at 5pm London time.
