FTSE 100

EUR/USD falls amid French political uncertainty, FTSE inches higher after strong Chinese manufacturing data, but UK data disappoints.

FTSE rises as inflation cools to a 3-year low. EUR/USD falls ahead of tomorrow's ECB rate decision.

EUR/USD edges higher ahead of German inflation data and Fed Chair Powell’s speech, but the FTSE 100 falls after Q2 GDP is revised lower.

EUR/USD rises on USD weakness ahead of this week’s Fed meeting. FTSE holds steady ahead of a bumper central bank week.

DAX rises ahead of the ECB rate decision. FTSE 100 rebounds as risk sentiment improves, housebuilders rise.

The FTSE was unable to add to its gains from the day before, after the Bank of England cut rates by 25 basis points in a close decision that, on balance, appeared less dovish than the vote split would have had you believed. A sharp drop in Japanese shares overnight dented investor confidence somewhat, which came hot on the heels of a technology-fuelled rally on Wall Street on Wednesday.

Tech earnings from Microsoft, Apple, Meta and Amazon to set the early tone for UK markets this week before focus the switches to whether the Fed and Bank of England will cut interest rates. Early signals suggest traders want to buy risk.

Interest rates are starting to be cut across the developed world. The combination of lower borrowing costs and positive economic growth should benefit cyclical assets, including stock indices which have lagged during the aggressive rate tightening cycle of recent years. That presents an opportunity for traders.

Today, millions of UK citizens are heading to polling stations to vote in the general elections, while the US is out celebrating Independence Day. Then it is all about the French legislative election on Sunday, which can arguably have a bigger influence on the FTSE 100 forecast than the UK vote today.

The FTSE moved moderately higher after the UK’s inflation rate fell to the Bank of England’s 2% target ahead of for the central bank’s rate section on Thursday.

UK stocks track Chinese markets and commodities higher. Rising commodity and precious metals prices should support mining stocks, plenty of which are constituents of the FTSE. Meanwhile, technical analysis suggests the UK stock index could finally join global rally.