Wall Street hit new records last night amid rising hopes for interest rate cuts.
The Dow Jones Industrial Average – one of the world’s leading benchmark indices – reached the 40,000 mark for the first time in early trading. It finally closed at 39,869.38.
The S&P 500 and Nasdaq also hit new highs days after figures showed U.S. inflation cooled last month.
Money markets are betting that the US central bank could begin cutting interest rates in September.
It is believed that the Bank of England could take action as early as June.
Record high: The Dow Jones Industrial Average, one of the world’s leading benchmark indices, reached the 40,000 mark for the first time
The Dow, home to giants such as consumer goods brand Procter & Gamble and Coca-Cola, has recovered after falling below 18,600 in March 2020.
Dan Coatsworth, analyst at AJ Bell, said: ‘Investors have warmed to the inflation reading, believing it is cold enough to prompt the Federal Reserve to cut rates.
Many companies are receiving a positive reaction to the results, which improves overall morale.’
In London, the FTSE 100 fell 0.1 per cent, or 7.15 points, to 8,438.65, while the FTSE 250 rose 0.2 per cent, or 47.21 points, to 20,822.84.
Pharmaceutical giant GSK will sell its 4.2 percent stake in Haleon, the consumer healthcare company it spun off.
GSK has sold 810 million Haleon shares since July 2022. GSK fell 0.8 per cent, or 14 pence, to 1,783.5 pence. Haleon added 0.3 per cent, or 1.1 pence, to 332.4 pence.
Stock Monitoring – Nexus
Infrastructure company Nexus soared after signing eight deals with housebuilders including Taylor Wimpey, Vistry and Persimmon in the six months to the end of March.
It began the second half of its financial year with orders worth £72m, up from £46m six months ago.
Nexus said housing construction will recover in the next 18 months. The shares rose 24.2 per cent, or 20 pence, to 102.5 pence, but are down almost 40 per cent over the past year.
Technology company Sage spooked investors with its outlook as revenue rose 9 per cent to £1.15bn in the six months to the end of March, saying it expects sales for the year to the end of September to be “broadly in line with those of the first semester.” ‘.
It sank 9.4 per cent, or 113 pence, to 1,084.5 pence.
Medical device firm Convatec lowered its annual growth forecast for its advanced wound care division amid uncertainty over product restrictions in the U.S. This led to a 4.1 percent drop, or 10.8p, to 255.4p.
Owner Grainger posted a loss of £31.2m in the six months to March 31, having made a profit of £5.7m in the year-earlier period. It fell 2.9 per cent, or 8p, to 264p.
Kipling owner Premier Foods’ annual revenue rose by £1.13bn, while profits soared by more than a third to £151.4m. It rose 0.8 per cent, or 1.4p, to 170p.
Uncertainty over Harland and Wolff – the Belfast shipyard that built the Titanic – showed little sign of easing after reports said it was facing closure amid a row over its future.
It responded by saying it had a solid long-term plan, but it sank 2.7 per cent, or 0.27p, to 9.75p.
A large number of mid-cap companies made huge profits. Magazine publisher Future, behind brands including Marie Claire and Four Four Two, said revenue rose 3 percent in the second quarter to March 31.
It signaled better performance in the UK and US, and rose 18.4 per cent, or 160 pence, to 1,030 pence.
Auction Technology, which operates online marketplaces, said revenue rose 1 per cent to £68 million in the six months to March 31, lifting it 14.6 per cent, or 72 pence, to 564 pence.
Housebuilder Vistry (up 0.9 per cent, or 11p, to 1,302p) expects higher profits as it aims to build more than 18,000 homes in 2024, up 10 per cent on the previous 12 months .