Proactive Investors -
- FTSE 100 near session peak at 7,902.36
- Wall Street edges higher after data, bank earnings
- Gold close to highs for the year
US sees gains
The FTSE 100 index hovered around the 7,900 level as US stock indexes edged higher on Friday as investors digested weaker retail sales data and a big batch of US banking earnings.
Around 15 minutes after the New York open, the Dow Jones Industrial Average was up 34 points, or 0.1% at 34,064, while the broader S&P 500 index added 0.2%, and the tech-laden Nasdaq Composite was up 0.1%.
Shares of JPMorgan (NYSE:JPM), Citigroup and BlackRock (NYSE:BLK) had added 6.2%, 3% and 1.6% respectively just after the market open.
FOREX.com market analyst Fiona Cincotta said this quarter’s bank earnings were under the spotlight more than usual given the recent turmoil in the sector.
“While the fallout was contained quickly and fears of a more serious financial crisis had eased, the market is looking to these earnings for any further clues of cracks in the sector,” she said.
“Stronger-than-expected results from Citigroup and Wells Fargo (NYSE:WFC), plus JP Morgan crushing estimates, have helped ease those concerns.”
Meanwhile, US retail sales fell more than expected in March, down 1% month-over-month, continuing the trend of softening US data seen this week.
US retail sales weak
US retail sales fell by a seasonally adjusted 1% in March from the prior month, the Commerce Department said on Friday. Sales were revised in February to a milder 0.2% decline from a previous estimate of down 0.4%.
Commenting on the data, Ryan Brandham, head of Global Capital Markets, North America at Validus Risk Management, said: “Headline numbers were weaker than expected, coming in 1% down MoM and continuing the recent market theme of softening US data.
"Excluding autos, gas and the control group, the numbers were stronger than expected, which may cloud the market reaction and potential positioning squaring into the weekend by market participants.”
Citi buoyant
Citigroup Inc (NYSE:C) completes the trio of big US banking results today, with its shares climbing after the lender reported first-quarter earnings which beat Wall Street estimates handily on the back of rising net income and better-than-expected revenue.
For the period ended March 31, 2023, the New York-based banking giant reported earnings of $2.19 per share on revenue of $21.45 billion, compared to the consensus earnings estimate of $1.66 per share on revenue of $20.1 billion.
Investors reacted to the news, sending Citigroup shares up 0.81% to $47.30 in pre-market trading session.
Here’s a look at a few of the top risers and fallers today
Spectral MD Holdings Ltd (LON:SMD) shot up a further 22% following yesterday’s announcement of a reverse merger into a Nasdaq-listed SPAC that will see the medtech company delist from AIM
Kodal Minerals (LON:KOD) added 17% on news that Chinese authorities have approved the US$118mln funding package from Hainan Mining for development of the Bougouni Lithium Project.
Bradda Head Lithium Limited (LON:BHL) rallied 24% to 6p after the North America-focused lithium development company announced the 100% acquisition of three inlier lode claims in the middle of its Central San Domingo claim block in Arizona.
Van Elle Holdings PLC (LON:VANL) saw its shares tumble 8.7% to 45.67p in early deals on Friday after the ground engineering contractor pointed to a softening in trading and investment delays since the half-year end.
Mirriad Advertising PLC (LON:MIRI) plummed by a third to 0.96p after providing an update on the strategic review and formal sale process announced in January. The board has concluded that there is no prospect for an offer and has accordingly decided to terminate the formal sale process.
FTSE welcomes US bank earnings
FTSE 100 has welcomed positive news among the US banks and looks set to close the week higher.
The index is up 46 points, or 0.59%, to 7,889.
Banks are on top with Standard Chartered (LON:STAN), HSBC (LON:HSBA) and Barclays (LON:BARC) leading the way, up 3.7%, 2.7% and 2.6% respectively.