Proactive Investors -
- FTSE 100 up 30 points at 7,962
- UK recession confirmed
- Thames Water rescue collapses
US markets open higher as GDP revised upwards
The Dow Jones led markets slightly higher in early trading after data revealed that US gross domestic product (GDP) grew more than previously thought in the final quarter.
As per the Bureau of Economic Analysis (BEA), the third and final estimate for GDP over the last three months of last year was 3.4%, against the 3.2% originally thought.
Faster growth came from upward revisions in consumer spending and non-residential fixed investments, the BEA said.
The Dow Jones added 17 points to reach 39,777 on the data, while the S&P 500 and Nasdaq climbed 4 and 6 points to 5,253 and 16,406 respectively.
The upward revision indicates “resilience in the US economy, despite what many would consider to be restrictive real interest rates,” Validus Risk Management’s Ryan Brandham commented.
Separate Labour Department data showed weekly jobless claims slipped by 2,000 to a seasonally adjusted 210,000 meanwhile, flat with previous readings and below expectations.
“Overall, this data will reinforce the stance of some Fed members who are questioning the necessity of three rate cuts in 2024,” Brandham explained.
“It will also support members of the Fed who are cautious about initiating cuts prematurely.”
Among companies, Walgreens Boots Alliance (NASDAQ:WBA) Inc (NASDAQ:WBA, ETR:W8A) (Walgreens Boots Alliance Inc (NASDAQ:WBA, ETR:W8A), Walgreens Boots Alliance Inc (NASDAQ:WBA, ETR:W8A))was among the few reporting in the run-up to Easter, with shares rising after sales came in above expectations at US$5.8 billion.
JD Sports, Flutter lead FTSE 100 higher
JD Sports Fashion PLC (LON:JD) held its spot as the FTSE 100’s biggest riser into Thursday afternoon, soaring 11.6% after pleasing investors with an update earlier in the day... Read more
Reassurances from analysts that Flutter Entertainment PLC (LON:FLTRF) should fare relatively well against several proposed clampdowns on gambling firms in the US saw it emerge as the next biggest riser meanwhile, climbing 2.9%... Read more
Hikma Pharmaceuticals PLC (LON:HIK) and British Airways owner International Consolidated Airlines Group (LON:ICAG) also enjoyed gains, with the latter having received positive comments from JP Morgan on Wednesday... Read more
Water firms Severn Trent PLC (LON:SVT) and United Utilities PLC (LON:UU) sat among the FTSE 100’s biggest fallers in the meantime, after Thames Water shareholders axed the firm’s rescue package... Read more
FTSE 250-listed Pennon Group PLC (LON:PNN) also dipped over 1% on the news.
M&G PLC (LSE:MNG) also faced a hefty fall, sinking 5.9%, while Smith & Nephew PLC slid 4.1% after confirming a new chief executive would join next month.
The FTSE 100 itself gained 35 points to reach 7,967.
Bitcoin gains on dollar
Bitcoin (BTC) added 2.2% against the US dollar on Thursday morning after closing lower yesterday, bringing its week-on-week performance above 4%. The BTC/USD pair was swapping at around $71,000 at the time of writing.
Bitcoin exchange-traded funds continued to recover on Wednesday, with another $243 million of cash inflows, adding to the $400 million-plus earlier in the week.
The bitcoin ETF space as a whole is approaching $12 billion of net cash inflows for the first time since the US Securities and Exchange Commission approved the products in January.