Morning Note: A Round-up of Global Financial Market News.
Market News
Global stocks rebounded from a two-day loss after Micron Technology’s blowout sales forecast rekindled investor confidence in the AI trade The largest US maker of computer memory chips rose by 15% after the market close. The news sent the Nasdaq futures up 2% and generated strong gains in Asia this morning: Nikkei 225 (+4.8%); Kospi (+5.5%).
Gold has fallen below $4,000 an ounce, while the yield on the US 10-year Treasury edged up to 4.42%. The US dollar rose to its highest level in more than a year against a basket of major currencies, making dollar-denominated commodities such as gold costlier for holders of other currencies. Attention now turns to the release of the Federal Reserve’s preferred inflation gauge – forecasters expect May’s personal consumption expenditures price index to show acceleration on both a monthly and year-over-year basis.
Alibaba slid to a 16-month low after Anthropic accused it of ‘illicitly’ accessing its Claude model using thousands of fraudulent accounts. China kicked off marketing up to €5bn of sovereign bonds in what could be its largest-ever such deal in euros.
JPMorgan, Goldman, and Citi boosted their dividends after passing this year’s Fed stress tests. JPMorgan also authorized a $50bn buyback programme.
Brent Crude has fallen to $72.50 per barrel, erasing all of its wartime gains, as the Strait of Hormuz reopening has flooded markets with supply. Despite the slide in crude oil, shipping costs for oil tankers are rebounding sharply, MLIV said. That reflects a shortage of available tankers after many were diverted, suggesting that fuel prices for gasoline and diesel will decline more slowly than crude benchmarks.
The FTSE 100 is currently little changed at 10,458. The Board of easyJet has rejected a fourth offer from Castlelake, this time for 650p, including a partial alternative for easyJet shareholders to elect for unlisted, non-transferrable, non-voting shares in a vehicle within Castlelake’s proposed structure. The Board has given Castlelake access to limited commercial information in the hope it might produce a more attractive proposal that better reflects the value of easyJet. The ‘put up or shut up’ date has been extended to 5 July. The shares are 5% higher at 570p this morning.
Sterling trades at $1.3175 and €1.1610, while the 10-year Gilt yields have fallen below 4.70%. Andy Burnham hasn’t laid out his vision for rebooting the UK economy, but his potential plans are a key concern for businesses and investors. A business lobby group warned that the next PM must not pile more pressure on companies with further tax rises.
Source: Bloomberg
