Another report published yesterday shows that the US job market is cooling, raising hopes of a Fed pivot. Oil prices fell after reports that US shipments last week could reach 5.7mn barrels a day. The FTSE 100 added 0.3%.
The UK's labor market also shows signs of cooling, with job postings on Indeed down to 10% above pre-pandemic levels from 48% at the start of the previous year.
Several companies reported financial results, with mixed outcomes. DS Smith, a packaging firm, announced a 15% decline in half-year profit before tax and the planned retirement of CEO Miles Roberts by the end of 2025. Frasers Group, owner of Sports Direct, reported a 12.6% increase in first-half profit and maintained its full-year profit guidance. Smart Metering Systems accepted a £1.3 billion takeover offer from a company owned by funds advised by KKR. Future PLC posted lower fiscal 2023 attributable profit and revenue, while AJ Bell reported increased full-year profit and revenue. Watches of Switzerland Group saw a decrease in fiscal first-half profit and revenue but confirmed its full-year revenue guidance.
Kelso Group Holdings reiterated its call for a demerger of THG's business units, believing it would unlock more value.
The pound and euro both weakened against the dollar, while oil prices reclaimed some ground after falling to a six-month low.
Things to read today:
- Sorry USA, China's economy is bigger than yours (Financial Times).
- The world cannot hedge against Donald Trump (Financial Times)
- Xi Tells EU Leaders China Wants to Be ‘Key Partner’ on Trade (Bloomberg)