Lucy Harley-McKeown
Global stocks mixed amid revived hopes for US rate cuts
European and US indices started the first trading day of June off on a positive note on Monday, as memestock Gamestop surged and hopes for earlier interest rate cuts percolated. Meanwhile, the FTSE 100 dipped.
By the closing bell on Monday, the FTSE (^FTSE) was trading 0.1% lower, while the DAX (^GDAXI) in Germany rose 0.6% and France's CAC (^FCHI) was up 0.2%.
The pan-European STOXX 600 (^STOXX) was 0.3% in the green.
Across the pond, contracts on the tech-heavy Nasdaq 100 (^IXIC) gained 0.4% as Nvidia (NVDA) shares popped on the heels of an AI chip update. Dow Jones Industrial Average futures (^DJI) lagged slightly, diving 0.6% lower, and the S&P 500 (^GSPC) was down 0.1%.
A surge in GameStop (GME) shares grabbed the spotlight, firing up speculation again of a return to a 2021-style meme rally. The stock skyrocketed over 100% at one point in pre-market trading after a Reddit post apparently by Keith Gill — AKA "Roaring Kitty" — showed a big bet by influential trader. Fellow meme darling AMC's (AMC) shares shot up over 20% alongside the move.
Last week's inflation reading in the US has increased bets for an interest rate cut decision after the Federal Reserve's September meeting, if all data continues to point in the right direction. The core personal consumer expenditure deflator, has came in at 0.2% month-on-month — the consensus had been swinging between 0.2% and 0.3% all week largely because based on the inputs from the PPI and CPI reports, the general sense was that it would come in at somewhere between 0.22 and 0.28% to two decimal places, according to analysts at ING.
The moves also follow a report by Sky News which suggests Chinese fast fashion giant Shein will file for a London listing some time in June. The float could value it at around £50bn and would be one of the most significant City floats in more than a decade if it goes ahead.
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