FTSE 100 – Page 3

As valuations soar, the stock market faces severe headwinds

The major U.S. indices, including the S&P 500, have pulled back modestly after hitting highs in recent sessions. Markets appear to be consolidating, as investors digest recent gains. Fed Chair Powell’s remarks that equity valuations are “fairly highly valued” add caution. While the market largely expects a rate cut in October, the Fed’s tone around […]

As valuations soar, the stock market faces severe headwinds Read More »

Bank of England holds base rate at 4%

The Bank of England held its base rate at 4%, citing inflation still running well above target. Additionally, it is slowing down its quantitative tightening (QT; bond sales) from £100B/year to around £70B. Inflation in the UK remains sticky (3.8% in August), which supports the BoE’s cautious stance. We should not be surprised to see

Bank of England holds base rate at 4% Read More »

Bonds, FTSE 100, Inflation, S&P 500

Gold declined despite a dovish Fed

Following the Fed’s widely anticipated 25-basis-point rate cut yesterday, the first since December 2024, markets reacted with initial caution, as the S&P 500 closed slightly lower amid questions about the pace of future easing. The Fed’s “dot plot” projections indicated two additional cuts by year-end 2025, aligning with expectations but signalling a cautious approach due

Gold declined despite a dovish Fed Read More »

Crypto, FTSE 100, Gold, S&P 500

U.S. interest rate decision

The S&P 500 recently closed above 6,600 for the first time, but sentiment is mixed as investors await the Fed’s interest rate decision. The Fed is expected to announce a 25 basis point rate cut today. Markets will be watching how dovish the Fed is, what its forward guidance says, how many cuts are anticipated

U.S. interest rate decision Read More »

FTSE 100, S&P 500, Stocks and Shares

Is AI overhyped?

Recent earnings have reinforced the strength of leading technology and AI-focused companies, pushing their stocks higher and keeping markets near record levels. The excitement is understandable—AI has the potential to transform industries in ways similar to the internet revolution of the late 1990s. Back then, investors rushed to buy into the “new economy,” and while

Is AI overhyped? Read More »

AI, FTSE 100, S&P 500, Stocks and Shares

S&P 500 at record highs, CPI is next

Yesterday, U.S. Producer Price Index (PPI) came in lower than expected, easing fears of runaway inflation and bolstering expectations that the Fed could begin cutting interest rates. The market now anticipates possibly multiple cuts before year-end. The market is now awaiting August Consumer Price Index (CPI), scheduled for release at 1.30pm today; these figures may

S&P 500 at record highs, CPI is next Read More »

FTSE 100, S&P 500

Outlook for today: US jobs report

Markets are showing a positive tone heading into today, largely fuelled by expectations that upcoming jobs data may finally justify interest rate cuts by the Federal Reserve as soon as mid-September. The US nonfarm payrolls is expected at 1.30pm, a weak report would increase the odds of a rate cut in September. The consensus among

Outlook for today: US jobs report Read More »

FTSE 100, S&P 500

Potential For a New High in the FTSE 100

The FTSE 100, a key indicator of the UK’s largest companies, has been a point of concern for investors lately. The primary culprit? Its lack of exposure to the booming tech sector. Across the pond, the S&P 500 in the US has been on a tear, fueled by the strong performance of tech giants. These

Potential For a New High in the FTSE 100 Read More »

FTSE 100