UK Market turn cautious as real-term wages fall

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UK Market turn cautious as real-term wages fall

 UK Market turn cautious as real-term wages fall
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UK Market News: The UK stock market edged lower on Tuesday, with the blue-chip FTSE 100 index losing over half a per cent towards the end of the session. Investors have turned nervous ahead of the central bank’s meetings. Experts are expecting a 25-basis point hike by the Bank of England on Thursday despite recent data showing a contraction in the UK’s GDP in April. Meanwhile, UK real wages continue to fall behind inflation at the fastest rate in a decade amid a rise in unemployment. According to the Office for National Statistics (ONS), regular pay, excluding bonuses for the quarter from February to April, fell by 2.2%.

Ashtead Group Plc (LON: AHT): The share of the industrial equipment rental company, Ashtead Group Plc, was down by 4.39%, with day’s low of GBX 3,551.00. The company has, though announced a 38% rise in full-year profits and raised its dividend.

HSBC Holdings Plc (LON: HSBA): The share of multinational universal bank and financial services holding company HSBC Holdings Plc was up by around 3.5%, with a day’s high of GBX 520.00. The bank’s share is leading the gainers of financial stocks after experts expect a further rise in interest rates on Thursday with soaring inflation.

ITV Plc (LON: ITV): The share of the British media company ITV Plc was up by around 2.5%, with a day’s high of GBX 69.46%. The company announced that it has agreed to buy 79.5% interest in Plimsoll Productions for around £103.5 million to expand its international business.

US Markets: The US market is likely to get a positive start, as indicated by the futures indices. S&P 500 future was up by 9.86 points or 0.26% at 3,759.49, while the Dow Jones 30 futures was up by 0.38% or 115.35 points at 30.550.40. The technology-heavy index Nasdaq Composite future was up by 0.17% at 11,307.93 (At the time of writing – 9:51 AM ET).

US Market News:

The shares of the oil and natural gas producer Continental Resources (CLR) were up by 7.4% in the premarket trading session after it received a US$70 per share private bid from Chairman Harold Hamm and his family. The oil producer’s board will establish an independent committee to evaluate the proposal.

The shares of the multinational computer technology company Oracle (ORCL) were up by 12% in the premarket trading session after it reported better than expected profit and revenue for its latest quarter. The company is seeing strong demand for its cloud software as more businesses transition to a hybrid workplace.

European Indices Performance (at the time of writing):

European Indices Performance

FTSE 100 Index One Year Performance (as on 14 June 2022)

1 Year FTSE 100 Chart

(Source: Refinitiv)

Top 3 Volume Stocks in FTSE 100*: Lloyds Banking Group plc (LLOY), Barclays Plc (BARC), Vodafone Group Plc (VOD).

Top 3 Sectors traded in green*: Energy (1.27%) and Financials (0.82%).

Top 3 Sectors traded in red*: Utilities (-2.05%), Industrials (-1.65%), Healthcare (-1.34%)

London Stock Exchange: Stocks Performance (at the time of writing)

London Stock Exchange stock performance

Crude Oil Future Prices*: Brent future crude oil (future) price and WTI crude oil (future) price were hovering at $123.16/barrel and $121.67/barrel, respectively.

Gold Price*: Gold price hovered at around US$ 1,824.45 per ounce, down by 0.43% against the prior day’s closing.

Currency Rates*: GBP to USD: 1.2091; EUR to USD: 1.0450.

Bond Yields*: US 10-Year Treasury yield: 3.328%; UK 10-Year Government Bond yield: 2.4900%.

*At the time of writing

Ashtead Group Plc (LON: AHT): The share of the industrial equipment rental company, Ashtead Group Plc, was down by 4.39%, with day’s low of GBX 3,551.00. The company has, though announced a 38% rise in full-year profits and raised its dividend.

HSBC Holdings Plc (LON: HSBA): The share of multinational universal bank and financial services holding company HSBC Holdings Plc was up by around 3.5%, with a day’s high of GBX 520.00. The bank’s share is leading the gainers of financial stocks after experts expect a further rise in interest rates on Thursday with soaring inflation.

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