Sterling continued to sell down hitting fresh lows in the sub -1.2800 region (4pm) as the Labour Party narrowed the election gap with the Conservatives (a Tory 5-point loss within a fortnight). Better US economic GDP figures also bolstered the US dollar.
The pound fell heavily against the yen, down more than -1.6% while the pound also fell -0.83% against the euro to 1.1449. WTI Crude lifted +0.35% though oil prices crashed 5% in total yesterday – so plenty of spare capacity to make up.
Meanwhile the FTSE 100 ended the day 30 points higher at 7,547.63 while the FTSE 250 also closed strongly up (20,024.92). The biggest FTSE 100 riser was Informa, up almost 6% while sustainable chemicals operator Johnson Matthey shares climbed 2.6%.
- UK FTSE 100 7,547.63 +0.40%
- Dow 21,069.62 -0.06%
- S&P 500 2,414.12 -0.04%
- Nasdaq 6,205.26 +0.69%
- DAX 12,597.19 -0.19%
- CAC 40 5,331.58 -0.108%
- Gold 1,269.60 +0.78%
- Oil WTI 49.17 +0.55%
US economy picks up speed
New US GDP data demonstrated that Stateside economic growth fared better in the first quarter than originally estimated with the US administration hiking the annual growth rate from 0.7% to 1.2%.
There’s a canker in the ointment as corporate profits dipped. But the consumer spending uplift is encouraging, climbing from 0.3% to 0.6%. Overall, the Trump administration is aiming for a 3% annual growth rate. For that, consumer spending will have to rise considerably.
Retirement age to rise to 70?
Elsewhere the World Economic Forum (WEF) has predicted that the retirement age in developed countries should lift to 70 by 2050 as life expectancy improves further.
"We must address it now or accept that its adverse consequences will haunt future generations, putting an impossible strain on our children and grandchildren," said the WEF’s Michael Drexler.
Cheap June getaway
As temperatures climbed across Northern Europe today Ryanair announced Bank Holiday seats from just £7.99 though you will need to book by midnight May 29 latest and travel in June.
“The long weekend,” Ryanair said, “has begun and we’ve launched a massive Bank Holiday seat sale with up to 20 per cent off on seats on 165 UK routes to Europe.”
Ryanair shares at €17.92 have lifted 23% year-to-date. Zacks Investment Research hiked their rating on the stock from Sell to Buy last week.