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Mixed start on Wall Street
The Dow Jones was alone in enjoying a positive start on Tuesday, climbing 90 points to 37,825, as the S&P 500 and Nasdaq both fell early on.
The S&P 500 dipped 10 points to 5,051 as the markets opened, while the Nasdaq fell 30 points to 15,854.
Analysts had warned of volatile trading following Israel’s overnight comments that it would respond to a weekend attack by Iran.
Scope Markets analyst Joshua Mahony pointed to “shaky” sentiment on the back of tensions in the Middle East.
“Increased concerns that the Federal Reserve may opt to maintain interest rates at the current levels for some time yet,” were adding to this, he said, with the chair Jerome Powell due to provide commentary today.
Elsewhere among companies, UnitedHealth Group Inc (NYSE:UNH) topped the early risers after beating revenue expectations for the first quarter and posting a smaller-than-anticipated hit from a cyberattack.
Live Nation Entertainment Inc (NYSE:LYV) sunk in the meantime, following reports the US Department of Justice could be preparing to file a lawsuit over alleged abuse of its dominant market position in ticket sales.
Pension withdrawals on the up
Cash being taken out of pension schemes hit a new record in 2023 according to new data from the FCA.
UFPLS or lump sum withdrawals accessed for the first time rose by 14.6% to 41,571 while the total number of pension plans accessed for the first time increased by 4.8% to more than 739,500.
Paul Leandro, a partner at consultancy Barnett Waddingham, commented: “The FCA should not be surprised by the increasing levels of cash withdrawals from pension pots, but they should be worried.
“Pension freedoms opened up Pandora’s Box - the temptation to draw cash rather than secure retirement income is great, especially in light of the cost-of-living crisis.
“Some withdrawals may be sensible and financially sound, where the individual has suitable resources - but most are not.”
Sales of annuities also decreased though the amount of money withdrawn from pension pots dropped 5% to £43.2 billion in 2023 from a year earlier.
Historic Danish stock exchange burns down
Denmark’s old 17th-century stock exchange building has been engulfed in flames.
Currently home to the Danish chamber of commerce, the Børsen building was seen going up in flames on Tuesday, prompting its spire to collapse.
The near-400-year-old Børsen building was built in 1625, making it one of Copenhagen’s oldest buildings.
Jakob Engel-Schmidt, culture minister, said 400 years of Danish cultural heritage had gone up in flames as a result, with onlookers said to have rushed in to rescue some of the historic paintings inside.
Børsen had been covered in scaffolding and white sheeting as renovations took place, with the cause of the fire as yet unknown.
Everyone inside was reportedly able to escape.
Thames Water given weeks to present survival plan
Thames Water has been given a matter of weeks to convince Ofwat of a viable survival plan to tackle its looming debt pile, the regulator has reportedly said.
A new turnaround strategy must be presented to Ofwat before May 23, the Guardian reported, before a June 12 cut off for the regulator’s so-called draft determinations.
Approval will need to be secured for the London water supplier’s plan to raise consumer bills by 40%, in a bid to address some £16 billion pound worth of debt.
Thames Water has faced crisis and even potential nationalisation over the past year after costs of servicing its debt pile have soared.
Last month, shareholders refused to offer funds to support the company, prompting it to likely default on bonds due later in April, in an apparent dispute with the regulator over hiking consumer bills to foot the cost.
Reports say Ofwat is concerned such plans, without a clear strategy on how management of the debt-laden business would be overhauled, would be unfair on customers.