- FTSE 100 ends positive
- Wall Street sours sentiment
- ECB cuts to 2%, as expected
- Oil industry investment to fall this year
- Investors wait on NFP
16.59: FTSE turns positive
The FTSE 100 edged up 0.1% to close at 8,811 on Thursday, reversing earlier losses after a phone call between U.S. President Donald Trump and Chinese President Xi Jinping suggested a potential thaw in trade tensions. The conversation, confirmed by Chinese state media, eased investor concerns about economic decoupling and boosted sentiment in precious metals, with silver soaring above $35 to hit a 13-year high.
Meanwhile, the British pound strengthened to a 2025 high of 1.3616, buoyed by weak U.S. economic data and hawkish signals from ECB President Christine Lagarde. Signs of slowing U.S. growth, including soft trade numbers and rising jobless claims, have increased market expectations for nearly 60 basis points in Fed rate cuts by year-end. With the dollar weakening and UK inflation still running above target, the pound remains supported by favorable interest rate differentials and Britain's comparatively resilient economic outlook.
15:40: FTSE 100 dips red ahead of Thursday’s close
London’s blue-chip index turned negative, slipping around 3 points lower, as Wall Street made a slow start to the day – dampening sentiments and attentions focussed on geopolitics.
15:20pm: Slow morning on Wall Street
US markets opened cautiously on Thursday as investors weighed soft economic data, geopolitics, and central bank moves.
The Dow fell 63 points (0.2%) to 42,365, with losses in consumer and industrials. The S&P 500 slipped 0.1%, while the Nasdaq inched up 0.1%, supported by large-cap tech. The Russell 2000 dropped 0.2%.
PVH Corp dragged sentiment after cutting its profit forecast, citing tariff pressures. Meanwhile, the European Central Bank delivered a 25bp rate cut, as traders now expect two Fed cuts this year, possibly starting in September.
Circle Internet Group and Chime Financial both debut today in high-profile IPOs, while earnings from Lululemon and Broadcom are due after the bell. Trade tensions and rare earth concerns remain in focus.
US jobless claims rose to 247,000 last week, above expectations. While still modest, Northlight Asset Management’s Chris Zaccarelli warned the trend points to softening conditions, with stagflation risks on the horizon.
Focus now shifts to Friday’s NFP report.
1:30pm: Wall Street points slightly higher ahead of open
Wall Street opened Thursday in cautious mood, with equity futures little changed ahead of Friday’s closely watched non-farm payrolls (NFP) report. The Dow, S&P 500, and Nasdaq 100 futures all posted marginal gains after Wednesday’s mixed session.
Caution stems from weak ADP and services data earlier this week, fuelling concerns over the economic impact of US tariffs. Jobless claims, productivity, and unit labour costs are due today and will help shape expectations for the Fed’s next move.
In Washington, a $2.4 trillion fiscal bill continues to stir deficit fears, weighing on US bond yields. President Trump’s push for rate cuts adds further pressure on the central bank.
Corporate news includes earnings from Broadcom and Lululemon. Tesla shares dipped after Elon Musk criticised the fiscal bill, while PVH dropped on weaker guidance. Robinhood rose on hopes of joining the S&P 500.
12:40pm: ECB cuts to 2%, as expected
The European Central Bank cut interest rates by 25 basis points, to 2%, just as expected.
It brings the Eurozone’s core rate back to 2% for the first time since late 2022, after which it reached a high of 4.5% during the phase of higher inflation.
At the same time, the European inflation is presently measure at 1.9%, below the 2% target of 2% - it’s eight months since inflation was as low in Europe.
Reacting to the rate decision, Hargreaves Lansdown analyst Susannah Streeter highlighted that ‘there’s no rocking the boat’ in Europe, adding that policymakers sticking to the forecast course of action.
“With the deposit rate now at 2%, it is considered to be in neutral gear, neither restraining or stimulating demand in the economy,” Streeter said.
“This expected wait and see stance is hardly surprising given that it’s still unclear how heavily tariffs will weigh on the eurozone economy ahead.”
11:10am: FTSE 100 builds some momentum
As the morning progresses, the market is building some momentum with London’s blue-chip index climbing 23 points, 0.27%, to trade at 8,824.
10:50am: UK spenders stay resilient
Confidence in the UK economy has dropped sharply over the past decade, falling from 45% in 2015 to just 28% today, according to Barclays’ 10 Years of Spend report. The decline follows years of economic strain driven by Brexit, the pandemic, geopolitical tensions and the cost-of-living crisis. Despite this, consumers have remained surprisingly resilient in their spending.
Discretionary outlays, spending on non-essential items, have grown at an average of 9.2% per year between 2021 and 2024, outpacing the 5% growth seen in essential spending. Confidence in non-essential spending has averaged 53% over the ten-year period.
The report, based on transaction data and over 200,000 consumer surveys, found that 66% of people are now more budget-conscious than a decade ago. Nearly half say they feel no better off than they did ten years ago.
10:00am: Proactive small-cap headlines
Great Southern Copper PLC (LSE:GSCU) has begun geophysical surveys at its Cerro Negro prospect in Chile, aiming to map extensions of high-grade copper and silver mineralisation ahead of its next drilling campaign. Read more
Valereum PLC (AQSE:VLRM) has signed a binding agreement with fintech firm Fideum to roll out a suite of crypto infrastructure services across Latin America, Europe and Turkey, as the London-listed company looks to broaden its presence in regulated digital asset markets. Read more
Helix Exploration PLC (AIM:HEX, OTCQB:HHEXF) has raised £4.5 million from institutional investors to accelerate its helium development plans in northern Montana, following strong flow test results from its latest production well. Read more
Ariana Resources PLC (AIM:AAU) has begun cold-commissioning at the Tavsan gold mine in western Türkiye, marking a major step towards bringing its second Turkish operation into production. Read more
Solvonis Therapeutics PLC (LSE:SVNS) has completed a key step in its search for new treatments for post-traumatic stress disorder, as the London-listed drugmaker advances a novel class of compounds aimed at improving the way trauma-related mental health conditions are treated. Read more
09:45am: ECB expected to cut interest rates
The European Central Bank is expected to cut interest rates again later today, at 12:45 BST, taking the deposit rate to 2.0%.
The move would be the eighth reduction in 13 months as the ECB responds to weakening growth and subdued inflation.
It will bring the rate down to its lowest level since 2022, prior to the global inflation ramp-up.
“A theme is emerging as we move towards the final weeks of Q2, central banks are getting more dovish,” commented Kathleen Brooks, research director at XTB.
“For now, the ECB is winning the interest rate-cutting race. It is widely expected to cut rates by another 0.25% to 2% later today … while other rate cuts are expected, we don’t think that the ECB has too much room to cut rates further, even though clear signs are emerging that the ECB no longer has an inflation problem.”
9:30am: Oil market predicted to drop 6%
Global oil investments are expected to fall by 6% in 2025, according to the International Energy Agency cited in a Bloomberg story.
This would mark the first annual drop in a decade excluding the pandemic-related downturn.
IEA points to declining oil investment, driven by global economic uncertainties, lower demand expectations, and the reduced ROI triggered by lower crude pricing.
A sharp pullback in spending on US tight oil is a key factor, according to the IEA.
It comes as crude prices have fallen amid escalating global trade tensions and increased output from OPEC+, which is adding supply into an already well-stocked market.
The Paris-headquartered energy industry body later this morning releases its World Energy Investment report for 2025.
9:05am: LSE's top main market headlines
Mitie agrees takeover of Marlowe, suspends buybacks
Mitie Group PLC (LSE:MTO) has announced a recommended offer to acquire compliance services firm Marlowe PLC (AIM:MRL) in a cash and share deal worth around £366 million. The agreement will see Marlowe shareholders receive 290p in cash and 1.1 new Mitie shares per Marlowe share, representing a 41.7% premium to the six-month average.The acquisition coincided with Mitie's full-year results, which showed revenue up 13% to £5.09 billion and operating profit of £162 million. The company has paused a £125 million buyback programme. Read more here ...
Fevertree trades in line, confirms guidance
Fevertree Drinks (AIM:FEVR) said it remains on track with expectations ahead of its AGM, forecasting low single-digit revenue growth and an EBITDA margin around 12% for the year. It reported strong momentum in the US, outperforming rivals and progressing through a transition phase in its Molson Coors partnership.In the UK, the brand maintained its number one position, while Australian production has now started. Shareholder returns under its £100 million buyback programme have reached £42.5 million so far. Read more here ...
Wizz Air shares dive as profit slumps despite revenue gain
Wizz Air Holdings PLC (AIM:WIZZ) carried 63.4 million passengers in the year to 31 March, up 2.2% year-on-year, with revenue rising 3.8% to €5.27 billion. However, operating profit dropped sharply to €167.5 million, down from €437.9 million, with GTF engine issues grounding aircraft. Despite CEO József Váradi emphasising operational resilience, net profit fell 41.5% to €213.9 million. Shares tumbled 24% as concerns mounted over profit pressure, geopolitical risks, and the absence of dividends. Read more here ...
Dr. Martens hit by profit drop amid marketing reset
Dr Martens PLC (LSE:DOCS) reported a 12% fall in annual revenue to £877 million and a 42% slump in pre-tax profit to £97.2 million, reflecting the impact of a “reset” in marketing strategy and tough conditions in its US wholesale channel. The company aims to return to growth this year following cost reductions and clearer brand messaging. CEO Ije Nwokorie said the new strategy is already showing signs of progress. The board declared a final dividend of 4.44p and a full-year total of 5.84p per share. Read more here ...
Wise posts 23% cross-border growth, lifts profit
Wise reported a 23% rise in cross-border payment volumes, helping drive a 31% increase in pre-tax profit to £242.7 million for the year ended 31 March. Revenue rose 24% to £1.25 billion, while active customers reached 12.8 million, up 29% on the prior year. The fintech firm reaffirmed its medium-term outlook of 20%+ annual revenue growth. Wise also confirmed plans to shift its primary listing to the US, though it will retain a secondary listing in London. Read more here ...
8:45am: FTSE up but subdued, investors await catalyst
UK markets opened on a subdued note as investors awaited fresh catalysts, with the FTSE 100 trading cautiously amid mixed global signals.
Technical drag from ex-dividend names such as Vodafone, WPP, and Sainsbury weighed on the index, though selective interest in miners helped limit early downside.
The 'footsie' was around 5 points higher, changing hands at 8,806.
And, year-to-date, the FTSE 100 remains up 7.7%, just shy of the March high.
The broader tone across global markets remains cautious. US futures were flat following weaker-than-expected private payroll data and signs of contracting activity in key service sectors.
Hopes for Federal Reserve rate cuts later in the year have been revived, although policymakers remain hesitant until the inflationary impact of tariffs becomes clearer.
In London, sentiment and domestic pride was bruised a little more, with confirmation that Wise PLC (LSE:WISE) will shift its primary listing to the US, making it ineligible for FTSE 100 inclusion. Despite maintaining a secondary London listing, the move reinforces concerns over UK capital market competitiveness.
"Anyone hoping to see British money transfer company Wise join the FTSE 100 has had their hopes dented this morning," said Matt Britzman, senior analyst at Hargreaves Lansdown.
"Keeping a presence in London makes sense, but it does little to sugarcoat the fact that yet another London-listed tech firm is looking across the Atlantic for better valuations - a story that’s becoming all too familiar."
8:05am: Flat start for FTSE 100
London's blue-chip benchmark, actually, managed a positive opening print - after early calls from the spreadbetters predicted a slightly negative start to the session.
Albeit, it's still early, and its only a sliver higher adding only a few points.
After the first few minutes trade the FTSE 100 was up around 3 points at 8,804.
7:25am: FTSE 100 seen slightly lower
The FTSE 100 is seen slightly lower ahead of Thursday’s open, with spreadbetting and CFD firm IG Markets calling the benchmark around 10 points lower – at 8,789 to 8,791.
Global equity markets showed resilience overnight, despite signs of softening economic data and renewed concerns over global trade tensions.
On Wall Street, the Dow ended Wednesday 90 points or 0.22% lower at 42,427 whilst S&P 500 was all but flat and the Nasdaq Composite finished 60 points or 0.32% in the green.
"Dips in equity markets are still seen as opportunities to buy cheaper. And while the data is fun to watch (and sometimes useful to dilute Trump headlines), it remains secondary to the blind bullishness,” said Ipek Ozkardeskaya analyst at Swissquote.
“That’s the takeaway from the post–April 2nd rally: the world may be wobbling, but markets march on.”
An early look at the futures show the Dow, S&P 500, and Nasdaq slipping modestly, with sentiment cooling as investors reassessed the impact of tariffs and slowing growth.
On Wednesday, fresh data from the US pointed to a slowdown in private sector hiring and a contraction in services activity.
President Trump renewed calls for interest rate cuts, while market pricing now reflects expectations of two Federal Reserve cuts by year-end. The US 2-year yield has fallen below 3.90%, helping to cushion equity downside.
In Europe, inflation data is giving the European Central Bank room to ease further. A 25 basis point rate cut is expected today, marking the eighth since early 2023.
The euro is supported by ongoing fiscal stimulus plans, though it remains capped below key resistance levels.
UK investors remain focused on global trade developments.
Talks between the US and China are stalled, while the UK’s temporary exemption from US steel and aluminium tariffs has not eliminated broader uncertainty.
With global business confidence sharply down in 2025, firms continue to delay investment decisions amid geopolitical risk.
5am: What to watch on Thursday 5 June
Half-year results from Dr Martens PLC (LSE:DOCS) will be the first major test for the boot maker’s new CEO, with the shares having stumbled to a new all-time low last month after the US tariff announcement but having made bullish strides since.
Chief executive Ije Nwokorie stepped up in January from his former brand director role, which was recently filled with the appointment of a former Adidas global executive who also has experience at North Face, Timberland and Vans owner VF Corporation.
Elsewhere, there are finals also for Wizz Air Holdings PLC (AIM:WIZZ), which saw its shares sink to their own nadir last autumn but has also been battling back in recent months.
JPMorgan recently singled out the budget airline as one that could be pushed into losses by weaker global economic conditions, but other analysts said recent monthly data indicated capacity growth has stabilised after accelerating in recent months after being hit by the groundings of planes with Pratt & Whitney's GTF engines.
Workspace Group PLC (LSE:WKP) recently warned of a £7 million profit headwind in the year ahead and flagged that it wilj share details of its new strategic plan alongside the release of full-year results.
Broker Peel Hunt expects it to focus on boosting occupancy and driving income growth, including platform upgrades and targeted marketing.
In the final remnants of US earnings season, semiconductor giant will see Broadcom report with its shares at fresh all-time highs, up 96% over the past 12 months.
Meanwhile, outside of company news, the European Central Bank is expected to cut interest rates again, with the main rate reducted 25 basis points to 2.0%.
This is down 200bps from the peak and is, said economists at Deutsche Bank, "broadly in the middle of the range of neutral".
"We expect the ECB to keep the meeting-by-meeting, data-dependent approach to setting policy. However, getting the hawks to support a June cut may require a hint of conditional patience. Uncertainty is the watchword, underlined over the last week by President Trump’s threat of a 50% tariffs on the EU and a ruling against the basis for many of the tariffs in a US court."
Announcements due:
Finals: CMC Markets, Dr Martens, Mitie Group, Wizz Air Holdings, Workspace Group, Young’s & Co Brewery
Overseas earnings: Broadcom, Fastenal, DocuSign, Brown-Forman and Ciena
Economic announcements: Construction PMI (UK), Factory Orders (GER), ECB Decision (EU), Balance of Trade (US), Continuing Claims (US), Initial Jobless Claims (US), Challenger, Gray & Christmas Job Losses (US)
FTSE 100 ex-dividend stocks to reduce index by: 3.64 points (Vodafone, WPP, Sainsbury's)