As the UK's inflation rate declines, European stock markets rise
European and French markets also experienced small increases after having declined in the previous session.
(AI Video Summary)
UK's inflation rate
During a recent IT call, it was reported that the UK's inflation rate, known as the Consumer Price Index (CPI), was slightly weaker than expected. This news had a small impact on European stock markets, causing them to increase slightly. Additionally, there was news about Lyft, a popular ride-hailing company, announcing its earnings. Initially, this caused Lyft's stock to rise by a whopping 66%, but later it dropped by 30%, ending the session with a 12% gain. These sudden changes in stock prices led to increased volatility in the markets, but things settled down afterwards.
European and French markets
Moving on to specific markets, in London, there was a significant turnaround, with gains observed in the 30-minute candle chart. Similarly, European and French markets also experienced small increases after having declined in the previous session. In Asia-Pacific, the Nikkei, a Japanese stock market index, reached its highest closing point in 34 years. Meanwhile, the Hong Kong markets saw even stronger gains compared to other global markets.
The US Federal Reserve
On Wall Street, there was a positive sign with a green candlestick after previous losses. However, the technology sector experienced its second consecutive day of losses. Despite these fluctuations, the overall trend in the markets remained positive, with a rising line of support indicating higher highs and a record high seen earlier in the week. As a result, there is an increased expectation that the US Federal Reserve may cut interest rates in June.
Dunelm
Corporate news was also in focus. Dunelm, a company specializing in home furnishings, reported strong sales growth. Heineken, the famous beer company, exceeded analysts' forecasts for its fully operating profit. However, its organic revenue was slightly lower than expected. Delivery Hero, a food delivery company, faced challenges with thin profit margins, affecting its overall value. On a positive note, Airbnb reported better-than-expected revenue for the fourth quarter. Cisco Systems was expected to release its earnings later in the day. However, Kraft Heinz's earnings were projected to fall by 9%, and its revenue was expected to decline by 5% in the fourth quarter. These declines were attributed to inflation and its impact on the company's products.
US CPI
Finally, the rise in the value of the US dollar following the consumer price index (CPI) data caused a drop in the price of gold. Furthermore, ongoing geopolitical tensions, along with uncertainty regarding the Federal Reserve's interest rate decisions, influenced the price of oil.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
