Better news for oil as WTI oil surged 1.3% today to $45.55 on US crude production numbers, down 100,000 barrels a day according to latest figures. Judging where oil is going remains fraught given the capacity for OPEC members such as Libya to still open up the taps, despite a wider OPEC production cut agreement.
US stocks opened slightly higher on Friday morning after a torrid Thursday. The Dow was up 61 points to 21,348, up 0.28% though the tech-heavy Nasdaq failed to make much ground.
The pound however came under pressure slipping -0.33% to $1.2964 while the euro was down by a similar margin to $1.1408. The dollar was buoyed slightly be higher new US personal spending data, up +0.1% month-on-month (more below), but it’s small gains in the big scheme of things.
- UK FTSE 100 7,312.72 -0.51%
- Dow 21,362.06 +0.35%
- S&P 500 2,424.28 +0.19%
- Nasdaq 6,144 0.00%
- Nikkei 225 20,033.43 -0.92%
- DAX 12,377.78 -0.30%
- CAC 40 5,151.23 -0.06%
- Gold 1,243.50 -0.18%
- Oil WTI 45.55 +1.3%
Some alarm for Game Digital as shares plunged more than 31% on a fresh profits warning. Though the company is positive on prospects for the second half, Game Digital’s full-year guidance was a shock.
Much of the worry was down to slower console Nintendo sales. But there’s also increasing pressure on consumer discretionary spend, mixed with a very uncertain political and financial outlook. The Bank of England is increasingly hinting of interest rate rises.
Game Digital’s share price is increasingly looking like a cautionary tale for investors. It floated two years ago at 200p a share. Today, following two profit warnings, those shares are worth just 22.75p. Painful too for City stock-picking guru Neil Woodford, owner of a sizeable chunk of the company.
More on the US economy and the fragile 0.1% uplift in US consumer spending in May. Though the climb is small consumer spending is responsible for around two thirds of the US economy; any change is scrutinised.
While spending did rise, the longer term core inflation figure is down 0.1% – the second dip in the last quarter – though Fed boss Janet Yellen has suggested the inflation retreat will not last.
But if it does, it makes raising interest rates that bit harder to do. Americans though appear to be heeding concern about increasing job insecurity with higher savings rates, now at an eight-month high of 5.5%.
In the UK, London's FTSE 100 was down 37 points at 7,312 with significant share price falls for United Utilities, down -3.45% and Next, down -3%. Some falls too for RBS and M&S, down -2% each also. The biggest climber was Mondi, up 1.61% at 2014p.
Breaking news: BA is receiving aid from Qatar Airways as cabin crew strike deadline, 1 July, nears.