FTSE 100 hits an intraday record high even as the UK manufacturing PMI contracted to 48.7 in April
US stocks rose on Monday, recovering their positions after last week’s sell-off. The bounce was due to a rise in tech shares in combination with easing tensions in the Middle East after Iran said it will not escalate the conflict with Israel. The Dow Jones advanced 0.67%, the S&P 500 gained 0.87%, and the Nasdaq Composite advanced 1.11% after a six-day losing streak. After its worst week in more than 1.5 years, shares of Nvidia climbed 4.5% during the session, while Arm Holdings rebounded nearly 7%.
Similarly, Asian benchmarks traded in positive territory on Tuesday. Japan’s benchmark Nikkei 225 edged 0.28% higher even as the data showed that the country’s manufacturing PMI came in at 49, contracting for 11 straight months. Meanwhile, the yen weakened further to fresh 34-year lows of 154.85 versus the US dollar. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5%, while Australia’s S&P/ASX 200 climbed 0.45%. The Hang Seng in Hong Kong added 1.92%, while the Shanghai Composite index was down 0.74%.
European markets were higher on Tuesday, with the FTSE 100 hitting an intraday record high even as the UK manufacturing PMI contracted to 48.7 in April, missing estimates of 50.3. The pan-European benchmark Stoxx 600 index was up 0.6% in early deals. On the positive side, the preliminary UK services business activity index jumped to 54.9 in April, beating the market consensus of 53.0. US stock index futures were mixed in early pre-market deals, suggesting risk demand could wane in the near term.
Meanwhile, the US dollar finished virtually unchanged on Monday, struggling to gain strength as Wall Street stocks registered strong daily gains. The selling pressure reemerged on Tuesday, with the USD index challenging the 106.00 figure after a brief dip towards the 105.85 zone that has been capping losses so far. Should risk sentiment deteriorate any time soon, the greenback may bounce back into positive territory, with recent highs in the 106.50 area in market focus despite the latest slide.