The FTSE and European stocks were mixed on Tuesday with London losing its earlier boost from lower than expected UK government borrowing figures that fuelled hopes of tax cuts for consumers.
The FTSE 100 (^FTSE) slipped 0.1% to 7,479 points during afternoon trading, while the CAC 40 (^FCHI) in Paris lost 0.5% to 7,376 points. In Germany, the DAX (^GDAXI) fell 0.3% to 16,638. The Stoxx 600 (STOXX) fell 0.3%.
UK public sector borrowing rose by £7.8bn in December, about half the borrowing made in the same month in 2022, according to the Office for National Statistics on Tuesday. It is the lowest for the month borrowing since 2019 and significantly lower than the £14bn expected by the Office for Budget Responsibility.
Read more: UK public debt slows and raises hopes for tax cuts
In Wall Street, US stocks hit pause on a record-setting rally as focus turned to the day’s stream of earnings for insight into the health of corporate America and the economy.
The Dow Jones (^DJI) lost 0.2% to 37,923 points. The S&P 500 (^GSPC) climbed 0.1% to 4,854 points and the tech-heavy NASDAQ (^IXIC), gained 0.1% to 15,378.
Hong Kong stocks rebounded Tuesday to lead gains in Asia markets, while Japan’s Nikkei 225 index was slightly lower after the Bank of Japan kept its monetary policy unchanged in its first policy meeting of the year.
The Hang Seng (^HSI) in Hong Kong rose 2.3% to 15,315 while the Shanghai Composite (000001.SS) climbed 0.5% to 2,770 points. Tokyo’s Nikkei 225 (^N225) lost almost 0.1% to close at 36,517 points.
Chinese stocks struggled as speculation of a huge rescue package from Beijing underwhelmed investors worried about the shaky economy.
Read more: UK interest rates to fall to 4% this year, say experts
Meanwhile, oil prices were little changed as traders weighed a host of conflicting supply and demand worries, from rising tensions in the Middle East to cold weather woes disrupting production in the United States.
West Texas Intermediate (CL=F) slipped 0.6% and was trading at $74 per barrel. Brent (BZ=F) crude climbed 0.7% to $79 per barrel.
Live9 updates
-
-
-
Gold remains above $2,000 as silver slips
Gold is trading at above $2000. (Reuters / Reuters) Gold (GC=F) has edged slightly higher despite no major market shifts, according to David Morrison, senior market analyst at Trade Nation.
Gold is a touch firmer this morning and continues to oscillate in the middle of a trading range between $2,050 and $2,000. Bulls should draw some comfort from the fact that gold held around here yesterday even as silver slumped below $22 to hit its lowest level since mid-November.
That sell-off could have been enough for gold to retest support at $2,000 as it did last Wednesday. Silver subsequently rallied, and is firmer again this morning although there’s not a lot of clear water between $22 and current levels. The Dollar Index is little-changed, despite a rally in the Japanese yen following last night’s Bank of Japan decision to keep rates unchanged at -0.10%, as expected. The 10-year US Treasury note is a tad firmer, but precious metals appear unconcerned for now.
-
Crest Nicholson boss leaves as profits plunge
Crest Nicholson completed 2,020 new homes. (Tony Smith) The boss of housebuilder Crest Nicholson is stepping down after the company revealed a 70% plunge in profits in a year.
Crest Nicholson said that its adjusted pre-tax profit was £41.4m in the year to the end of October, down 70% from £137.8m a year earlier.
Peter Truscott will be replaced as chief executive by Martyn Clark, now chief commercial officer at rival Persimmon (PSN.L), later this year.
Crest Nicholson completed 2,020 new homes, down about a quarter from 2,734 the year before, leading to a 28% drop in revenue to £657.5m
The struggling housebuilder said that it had put aside £13m to cover a legal claim for a 2021 fire in one of its low-rises.
“Crest Nicholson’s results for the year to October 2023 contained no new, nasty surprises as last week’s profit warning had already lowered expectations, so its share price has hardly flinched in the face of a sharp drop in completions, sales and profits,” AJ Bell investment director Russ Mould, said.
-
-
China weighs stock market rescue package backed by $278bn
Beijing wants to revive the country’s slumping stock market. (REUTERS / Reuters) Authorities in China are considering taking steps to stabilise the slumping Chinese stock market, Bloomberg reported.
Policymakers are seeking to mobilise about RMB2trn (£218bn/$278bn), mainly from the offshore accounts of Chinese state-owned enterprises, as part of a stabilisation fund to buy shares onshore through the Hong Kong exchange link.
They have also earmarked at least RMB300bn of local funds to invest in onshore shares through China Securities Finance Corp. or Central Huijin Investment Ltd, citing familiar with the situation said.
-
-
-
Watch: US stocks are due for a pullback – CIO
Download the Yahoo Finance app, available for Apple and Android.
