Fed interest rate decisions and the stock market | Wilnesh News

Britain’s FTSE 100 provisionally closed down 0.3% on Wednesday, with most European markets closed as traders celebrated the May Day/Labor Day public holiday.

The market move comes as investors pay close attention to the Federal Reserve’s upcoming interest rate decision.

— Sam Meredith

this S&P 500 Index and Nasdaq Index Stocks opened lower on Wednesday as Wall Street braced for the Federal Reserve’s upcoming interest rate decision.

The broader market index fell 0.15% along with the Nasdaq.this Dow Jones Industrial Average An increase of 46 points, or 0.1%

—Samantha Subin

mulberry 1:56pm London Shares fell 9.3% after the British retailer known for its luxury handbags reported a 4% drop in full-year revenue and a 3.2% drop in retail sales Transaction updates.

“While we achieved positive revenue growth in the first half, Mulberry was not immune to the general decline in luxury consumption in recent months, particularly in the UK and Asia. This decline was partially offset by positive trading in the US .

Andretta said that the trading environment in the UK and China, the main luxury market, remains challenging and is not expected to change in the short term.

“As a result, we are managing the business prudently and focused on executing our strategy and vision to become a globally sustainable luxury brand,” Andretta said.

The company has moved more production to the UK in recent years after facing ongoing supply chain challenges.

—Jenny Reed

Haig Bathgate, head of investments at Atomos, comments on economic conditions and bond market investments.

UK house prices fell for the second consecutive month in April, according to an index released by lender Nationwide.

Prices fell 0.4% quarter-to-quarter, after falling 0.2% in March. Economists polled by Reuters had expected another 0.2% decline.

On an annual basis, prices rose 0.6% in April, with the growth rate slowing down from 1.6% in March.

Nationwide chief economist Robert Gardner said the figures likely reflected continued pressure on buyers due to rising interest rates.

Gardner added that seasonally adjusted UK house prices are now around 4% below the record high set in summer 2022.

Mortgage rates have been trending higher in recent months as markets have lowered expectations for how much the Bank of England will cut interest rates this year. The average 2-year fixed residential mortgage rate was 5.91% on May 1, up from 5.8% in early April, according to Moneyfacts.

—Jenny Reed

British clothing and homewares retailer Next maintained its full-year profit and sales guidance, with shares falling 0.3% at 10 am in London.

The company, seen by some as an indicator of British consumer demand, reported a 5.7% annual sales increase in the first quarter. Transaction updates.

In-store sales were flat, while online sales grew 8.8%.

Economists expect the UK retail environment to improve this year amid rising real household incomes and potential interest rate cuts.

—Jenny Reed

Aston Martin said its first-quarter adjusted pre-tax loss nearly doubled to 110.5 million pounds ($137.8 million), and its shares fell more than 11% in early trading. The results were worse than market expectations.

The stock pared losses and fell 7% as of 9:05 a.m. London time.

Analysts at Jefferies said the result was a “significant miss across the board”, with sales down 26%.

Aston Martin said four new models due for delivery in 2024 will drive “significant growth” in the second half of the year and beyond, with the quarter representing an “anticipated transition period”.

read more here.

—Jenny Reed

At 8:30 a.m. London time, the FTSE 100 rose 0.2%.

Most European exchanges were closed for the May Day public holiday.regional Stoke 600 The index ended lower on Tuesday, recording its first monthly loss since October.

GSK Major pharmaceutical company reported first-quarter core operating profit growth of 27%, exceeding company consensus expectations Upregulate its full-year growth prospects.

The British company said it now expects core operating profit to rise 9% to 11% in 2024, up from its previous forecast of 7% to 10%. The company now also expects core earnings per share to grow 8% to 10%, compared with previous guidance of 6% to 9%.

—Jenny Reed

According to analysis by CNBC Pro, only two European stocks have delivered positive surprises to the market in each of the past five quarters.

CNBC Pro screens Stoxx 600 stocks that report earnings per share numbers and provide analyst estimates on FactSet.

One stock stands out from the crowd as its stock price surged multiple times following its quarterly earnings release. Most recently, the company beat profit expectations by 6.1%, sending shares up more than 8% in the following trading session. Likewise, the stock rose 12.8% in a single day four quarters ago.

CNCB Pro subscribers can read more about the stock here.

— Ganesh Rao

Oil prices fell for a third straight day on rising U.S. inventories and optimism about a ceasefire deal in the Middle East.

The Brent crude oil contract fell 0.88% to $85.57 a barrel, while the U.S. West Texas Intermediate crude oil contract fell even more, falling 1.03% to $81.09 a barrel.

Reuters reported that U.S. crude oil inventories rose by 4.906 million barrels last week, while gasoline and distillate inventories fell, market sources said on Tuesday, citing data from the American Petroleum Institute.

— Lim Hui Jie

Some believe the future is starting to look brighter for biotech stocks.

With the market now expecting the first rate cut to come in September rather than June or July as previously thought, biotech stocks could start to perform well.

Biotech covers many different areas, but Citi has identified a market worth $2.9 billion that it says is poised for greater growth. According to Citi, the market will experience mid-single-digit growth over the next five years.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Today, only London’s FTSE index opened, while Germany’s DAX, France’s CAC and Italy’s FTSE MIB were closed due to the May Day/Labor Day holiday.

this FTSE 100 The index is expected to open 11 points lower at 8,132 points, IG data showed.

Gains came from GSK, Next, Abrdn, Metro Bank, Aston Martin Lagonda and Domino’s Pizza Group.

— Holly Elliot