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The morning catch up: UK rallies as new government closes in on victory; US closed to celebrate freedom

Published 05/07/2024, 09:28 am
Updated 05/07/2024, 10:00 am
© Reuters.  The morning catch up: UK rallies as new government closes in on victory; US closed to celebrate freedom
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The Australian share market is expected to slip today, with futures pointing to a 0.2% drop to 7,799 points when trade starts.

US closed to celebrate freedom

The US markets were closed overnight to celebrate the country’s independence from the British monarchy, just as debate rages around the Supreme Court decision that would grant a president 'king-like' immunity.

Conversely, just over the Atlantic, UK markets were alive with anticipation as the country prepared to usher in a new leader, with the sitting conservatives expected to lose some 241 seats.

UK stocks spearheaded gains on European share markets, which continued an upward trajectory yesterday, bolstered by positive sentiment across most sectors.

The Energy and Financial sectors led the rally, while Healthcare and Materials also posted gains. The more volatile Technology sector sank a little.

The continent-wide FTSEurofirst 300 index rose by 0.5%, adding 11 points.

In London, the UK FTSE 100 index increased by 0.9%, or 70 points, although it has declined nearly 2.5% in recent weeks due to election-related uncertainties.

On Wednesday, the Dow Jones index fell by 24 points, or 0.1%, while the S&P 500 index rose by 0.5%, or 28 points, and the Nasdaq index gained 160 points, or 0.9%, both reaching record highs.

US equity futures didn’t move much during holiday trading. Futures linked to the Dow Jones were up 40 points, or 0.1%, while S&P 500 futures dropped 1.5 points, or 0.03%, and Nasdaq 100 contracts fell 30 points, or 0.14%.

US government bond markets were also closed on Thursday.

Currencies and commodities

In currency markets, European and North American trades were thin, but gains against the US dollar were generally consolidated.

The British Pound reached a three-week high, trading between 1.2741 and 1.2768, and was last at 1.2760.

The Euro climbed from US$1.0785 to US$1.0814, starting Asian trade near US$1.0812. The Australian dollar rose from 67.03 US cents to 67.32 US cents and started the Asian day at 66.28 US cents.

The Japanese yen strengthened against the US dollar, improving from 161.40 yen to JPY160.95, and was last at JPY161.21.

Global oil prices remained at two-month highs, with thin trading volumes due to the US holiday.

Brent Crude increased by US$0.21 or 0.2% to US$87.55 per barrel, while US Nymex Crude rose by US$0.18 or 0.2% to US$84.06 per barrel in after-hours trading on Thursday.

Gold futures prices eased to US$2,365.40 an ounce, down 0.2% in after-hours trading on Thursday. Spot gold traded near US$2,356 an ounce in late North American trade.

Iron ore futures were at US$113.71 a tonne in Singapore trade on Thursday, with US futures markets closed for a public holiday after closing at US$113.26 a tonne on Wednesday.

Read more on Proactive Investors AU

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