Proactive Investors -
- FTSE 100 hit session low of 7,556.92 earlier
- US stocks open up after PCE inflation data
- UK April retail sales beat City expectations
Darktrace dented
Darktrace (LON:DARK) shares dropped after Bank of America (NYSE:BAC) Merrill Lynch initiated coverage of the cybersecurity firm with an 'underperform' rating and 240p price target.
The US bank's analysts said Darktrace's growth was set to decelerate "significantly" given "much stronger" competition in the next year and that the weaker macro environment will lead customers to further consolidate providers.
The analysts estimate Darktrace will see a compound annual growth rate of 18% for FY23-25, which is 23% below consensus expectations.
In afternoon trading, Darktrade shares were down 11.3% at 259p.
PCE deflator above forecast
The Federal Reserve’s preferred gauge of US consumer inflation, the April core PCE price index rose 0.4% in April from the prior month and 4.4% from a year earlier, with both increases slightly above estimates.
Consumer spending rose 0.8% in April, the Commerce Department said, boosted by higher spending on vehicles and services such as insurance and healthcare after two months of weaker spending, with March and February both up 0.1%.
Meanwhile, other data showed April US durable goods orders come in at 1.1% vs a -1.0% estimate.
According to the CME's FedWatch Tool, the probability that the FOMC will leave rates unchanged at their June 13-14 meeting is now 44%. down from 59% just before the numbers were released and there is around a 56% chance of a 25 basis point increase vs 41% prior to the data coming out.
A quick glance at some of London’s movers
Rockfire Resources PLC (LON:ROCKR) - up 16% to 0.25p: Shares jumped higher on Friday following news its geotechnical drilling program at the Molaoi zinc deposit in Greece has yielded the highest zinc grades ever recorded at the site out of the 180 drill holes that have been completed.
Quantum Blockchain Technologies PLC (LON:QBTQ) - up 17% to 1.85p: Shares jumped after the group appointed Vladimir Kusznirczuk as the company's marketing and business development manager with immediate effect. Kusznirczuk’s focus will be on opportunities, specifically developing joint ventures and strategic partnerships, with US, Chinese and Canadian bitcoin miners and mining rig manufacturers, the blockchain investment firm said.