Yahoo Finance Lucy Harley-McKeown
European and US markets cautious as traders look to key inflation data
The FTSE 100 and European markets were mixed on Tuesday in London following wage growth data which will temper confidence of a summer interest rate cut by the Bank of England. Global markets are now looking ahead to a key US inflation print on Wednesday.
By the closing bell, the FTSE 100 (^FTSE) had risen 0.2%, while Germany's DAX (^GDAXI) fell 0.1% and the CAC in Paris (^FCHI) was up 0.2%.
The pan-European STOXX 600 (^STOXX) rose about 0.2% in the session.
Across the pond, stocks were tepid, with the three major indexes — the Dow, S&P 500 and Nasdaq (^DJI, ^GSPC, ^IXIC) — hovering just above a flat line at the open, with the Nasdaq breaking out to trade 0.4% higher by the close in London.
Despite concerns about UK wage growth, jobs data released by the Office for National Statistics showed a rising unemployment rate. The jobless rate rose to 4.3% between January and March — the highest since May to July last year. The number of new vacancies also slowed.
Global markets are now looking ahead to the Consumer Price Inflation print on Wednesday in the US, which will give clues as to the Federal Reserve's thinking on rate path.
"The economic data certainly has the ability to move the markets well away from their mean, while many speculators believe that we are in a goldilocks scenario where bad news is good news for the equity markets and good news is good news," said Naeem Azlam, chief investment officer at Zaye Capital Markets. "This is because the US equity markets are back near a level where one can see them flirting with their all-time highs."
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Greggs' growth
Hoarding depicting a giant sausage roll with the tagline 'Always the lead roll' outside a new Greggs shop on 10th April 2022 in London, United Kingdom. Greggs plc is a British bakery chain. It specialises in savoury products such as bakes, sausage rolls, sandwiches and sweet items. (photo by Mike Kemp/In Pictures via Getty Images) (Mike Kemp via Getty Images) Greggs reported sales growth of 7.4% as the bakery chain remains on track to open between 140 and 160 new stores in 2024.
The firm reported a 7.4% rise in like-for-like sales for the first 19 weeks of 2024, with total sales in the period hitting £693m.
Greggs added that its new range of iced drinks was “performing well”, with plans to roll it out further from the current 300 shops to up to 700 in the coming months.
Since the start of the year Greggs has opened 64 stores, and closed 37 — including relocations — giving a total of 2,500 shops trading nationwide.
Anglo American reveals plan to break things up
TOPSHOT - A vehicle drives at the Anglo American Sishen Iron Ore mine near Kathu on November 22, 2023. (Photo by EMMANUEL CROSET / AFP) (Photo by EMMANUEL CROSET/AFP via Getty Images) (EMMANUEL CROSET via Getty Images) Mining giant Anglo American (AAL.L), one of the heavyweights of the FTSE 100 (^FTSE), said it will break up the business, after it rejected a $34bn advance from rival BHP.
The move, which will see major parts of its business sold off, will streamline the company to focus on copper, iron ore and crop nutrients. The De Beers diamond operation, its steelmaking and coal operations and Anglo American Platinum are up for sale.
The move marks a strategy shift towards clean energy, the company said in a statement to the London Stock Exchange.
"We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction," CEO Duncan Wanblad said.
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