European stocks mixed and US tepid as central banks signal rate cuts

US stocks were headed for weekly gains amid optimism about an earlier than predicted interest rate cut. The FTSE was up on Friday. (MANDEL NGAN / AFP)

Stocks across Europe were mixed on Friday morning and US equities were treading water, following a busy week for central bank announcements and gloomy retail sales data from the UK for February.

• The FTSE 100 (^FTSE) rose 0.7% by the closing bell, as bets for an early rate cut by the Bank of England ramp up. Germany's DAX (^GDAXI) was also up 0.2%, while the CAC (^FCHI) in Paris fell 0.4%.

• The pan-European STOXX 600 (^STOXX) was almost flat.

• Meanwhile, the S&P 500 (^GSPC) fell around 0.2%, the Dow (^DJI) headed 0.5% lower and the tech-heavy Nasdaq (^IXIC) was almost flat.

• Despite the fall on Friday, US stocks are still headed for weekly gains amid optimism about an earlier than predicted interest rate cut.

• Bets have also now turned to a UK interest base rate cut in June, as multiple data points look increasingly promising for the macroeconomic outlook.

• Two notoriously hawkish central bank rate setters changed calls for further hikes in the meeting on Thursday, while governor Andrew Bailey touted an "increasingly promising story" for the UK economy in an exclusive interview with the FT.

• Meanwhile, data from the ONS showed that retail sales flatlined in February in the UK as the country saw the fourth wettest February on record. The lacklustre performance came following a bounce-back in January after poor performance over Christmas.

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That's all from me!

Fri, 22 March 2024 at 12:30 pm GMT-4, Lucy Harley-McKeown

Thanks for reading. Head over to our US site for more market moving stories.

Brent crude on track for third day of losses

Fri, 22 March 2024 at 11:54 am GMT-4, Lucy Harley-McKeown

Here are analysts at IG with some analysis:

"Oil and natural gas prices continue to slide as the US government has pressed Ukraine to halt drone strikes on Russian energy facilities, fearing it could provoke retaliation and drive up global oil prices. Gold and silver prices have stalled below this week's highs, with gold making a record high at $2,222.915 per troy ounce on Thursday."

Leading the FTSE 100 this afternoon: Phoenix

Fri, 22 March 2024 at 10:55 am GMT-4, Lucy Harley-McKeown

Phoenix Group (PHNX.L) is up more than 9% this afternoon, following an announcement which set out ambitious new targets for 2026 after beating expectations in the 2023 financial year.

The savings and retirement firm said adjusted operating profit was up 13% year-on-year to £617m, driven by “strong growth” in its pensions and savings business.

"We have achieved our 2025 growth target two years early with £1.5bn of new business cash delivered by our Standard Life business — a new record," said CEO Andy Briggs. "We delivered over £2bn of cash generation and maintained our resilient balance sheet, and our strong performance has enabled the Board to recommend a 2.5% dividend increase."

Vodafone helps prop up FTSE 100

Fri, 22 March 2024 at 8:00 am GMT-4, Lucy Harley-McKeown

Vodafone (VOD.L) is among the top stocks in the FTSE 100 today, despite a hitch in the company's merger with Three.

The proposed merger between mobile networks Vodafone and Three could lead to “customers facing higher prices and reduced quality”, the UK's competition watchdog has warned.

The Competition and Markets Authority (CMA) said the deal will now face an in-depth investigation unless both companies can soon address their worries.

Vodafone and Three first announced the £15bn merger last summer. It would create the UK’s largest mobile phone network.

The two mobile firms have argued the deal will allow them to increase investment and better compete with major rivals, EE operator BT and Virgin Media-O2.

Stock was up about 2% by midday.

Here's what US stocks are doing ahead of the open

Fri, 22 March 2024 at 7:07 am GMT-4, Lucy Harley-McKeown

Reddit's IPO day

Fri, 22 March 2024 at 7:05 am GMT-4, Lucy Harley-McKeown

CEO of Reddit Steve Huffman rings a ceremonial bell at the New York Stock Exchange to celebrate the company's IPO in New York City, 21 March 2024. Photo: Brendan McDermid/Reuters (REUTERS / Reuters)

Among stocks to watch at the US open is Reddit. Here's Yahoo Finance UK reporter Pedro Goncalves's take:

Shares in Reddit soared 48% on their market debut after an initial public offering, valuing the social media platform at more than $9bn (£7.14bn).

The initial public offering (IPO) for the San Francisco-based company was first priced at $34 a share, putting its market value at $6.4bn.

However, in the first 24 hours of trading, the stock peaked at $57.80 a share, up 70%, before dropping to $50.44 to close the day.

Within the IPO, Reddit reserved 1.7 million shares for the site's users, friends and family.

A life-size version of Reddit’s alien mascot Snoo rang the opening bell of the New York Stock Exchange on Thursday, to cheers and applause.

Wetherspoon stock dips despite jump in profit

Fri, 22 March 2024 at 5:23 am GMT-4, Lucy Harley-McKeown

JD Wetherspoon (JDW.L) stock dropped despite a surge in profit for the discount boozer. The company reported profits for the six months to 28 January, up to £36m from £4.6m the year before. All-in-all sales were £991m, up 8.2% for the half

According to the latest accounts, the company's estate has shrunk to 814 pubs, down from a peak of 955 in December 2015. Despite the diminishing number, sales per pub are up by about 50%, the company added, also saying that it has the potential for 1,000 sites across the UK.

Stock fell 6.4% following the report.

Here's how people spent their money online in February

Fri, 22 March 2024 at 4:47 am GMT-4, Lucy Harley-McKeown

Chart: ONS

US stocks on Thursday

Fri, 22 March 2024 at 4:12 am GMT-4, Lucy Harley-McKeown

Our US team reports:

Stocks on Wall Street rose to build on a record-setting rally on Thursday, as relieved investors continued to celebrate the Federal Reserve's signals it will delay but not slow rate cuts.

The S&P 500 (^GSPC) rose 0.3%, finishing at a fresh high of 5,241. The Dow Jones Industrial Average (^DJI) gained roughly 270 points or 0.7% to creep closer to the 40,000 mark, while the tech-heavy Nasdaq Composite (^IXIC) moved up 0.2%.

The stock indexes had closed Wednesday at all-time highs after the Fed put to rest investors' worries that coming cuts to borrowing costs would be less deep than forecast. Policymakers stuck to their outlook for three rate cuts in 2024, despite sticky inflation data that might have led to a scaling-back in easing.

A sea of green for stocks worldwide followed the "dot plot" forecasts and Chair Jerome Powell's lack of alarm over the Fed reaching its inflation goal. Gold (GC=F) jumped to a record above $2,200 an ounce.

Overnight in Asia

Fri, 22 March 2024 at 4:10 am GMT-4, Lucy Harley-McKeown

Stocks dipped across Chinese equities as the week closed out in Asia with the Hang Seng (^HSI) falling 1.9% and the SSE Composite (000001.SS) down 1%.

The moves came as China's yuan weakened to a four-month low and breached the psychologically important 7.2 per dollar level. Reuters reported the move prompted state-owned banks to start selling dollars for yuan in an attempt to prop it up.

The Japanese yen was also under pressure, despite central bank attempts to spur on the economy. The Bank of Japan raised interest rates above zero for the first time in 16 years earlier in the week, but it doesn't seem to have had the desired effect.

Meanwhile, the Nikkei (^N225) rose 0.2%.

Good morning!

Fri, 22 March 2024 at 4:03 am GMT-4, Lucy Harley-McKeown

Hello from London. It's already been a big week for central bank decisions, with the Bank of England and Federal Reserve both making moves. Today we have UK retail sales data and consumer confidence. It's also nearly the weekend — let's get to it!

Watch: Chancellor hails inflation rate fall to 3.4%

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