Derren Nathan, head of equity research, Hargreaves Lansdown: “In a light day of economic data points and earnings reports, the FTSE 100 has taken its cues from overseas markets with nearly a 40-point gain after the opening bell. Less than one month into the year, London’s flagship index is up around 2% in 2025. That’s been led by some big gains in the mining sector, which has been boosted by soaring metal prices and consolidation activity. But with some 64 of the 100 largest companies listed in London is positive territory, the rally also has some breadth.
Tech isn’t a huge feature of the London markets but the FTSE’s only software pureplay Sage has put its best foot forward today, with a strong first quarter trading update. The provider of accounting and business applications grew revenue by 10% with cloud revenues leading the way, up 15%, and positive growth seen in all regions. Its next-generation solution, Sage Intacct, which offers increased levels of automation for financial reporting is building scale. Despite the lack of upgrade, the momentum has driven the stock up 2%.
Asian markets were mostly up overnight, including a new record high Seoul’s KOSPI which initially dipped after Donald Trump announced an increase in tariffs from 15% to 25% on South Korean exports. The rise applies to goods including cars, timber and pharmaceuticals on the premise that Lee Jae Myung’s government had been slow to implement last year’s trade deal. But Washington’s climb down on tariffs to European trade partners has added to investor scepticism over the President’s resolve to push through higher import taxes. With a delegation on its way from Seoul to Washington, markets are viewing this latest twist as more carrot than stick.
Despite resilient appetite for risk assets, Gold, a go-to safe haven, is up again today and looks to be heading back to $5,100 mark. Silver is having an even stronger run up nearly 9% to over $113. The International Monetary Fund’s managing director, Kristalina Georgieva has stoked fears of further dollar weakness and the inflow into metals is likely to include a slice of speculative monies ahead of tomorrow’s interest rate decision by the Fed.
Markets aren’t expecting any changes to lending rates, but markets will be watching keenly to see if Chair Powell, who’s kept a tight grip on monetary policy, is to be replaced by a Trump dove before the end of his term on May 15.
US Stock Futures are on the fence, with the Dow Industrial down a touch but the NASDAQ pointing upwards ahead of key tech earnings tomorrow.
Brent crude oil prices have come back a little further from four-month highs to around $65.3 per barrel. The resumption of exports from Kazakhstan’s Tengiz oil field is adding to the oversupply narrative. That could see over one million barrels of oil per day find its way onto the market. However, the presence of a US naval Armada heading towards the coast of Iran has kept a lid on losses as fears grow of disruption to oil and gas production and transport in the Persian Gulf.”
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