Proactive Investors -
- FTSE 100 up 27 points at 8,191
- Energy bills to fall
- Beer sales soar on Euros boost
Wall Street starts higher
US stocks have opened higher today, with the markets lifted by a bullish performance in the first half and expectations it will continue throughout the next few months.
The Dow Jones lifted 0.2% to 39,204, while the Nasdaq opened at 17,772, up also by 0.2%.
The S&P 500 started the day 0.25% higher at 5,474.
Some of the companies making today's headlines included Boeing (NYSE:BA), which opened close to flat after it announced it would be buying part supplier and former subsidiary Spirit AeroSystems for US$8.3 billion.
Boeing was also handed an ultimatum by the US justice system: admit to fraud charges or face a public trial for the two fatal crashes of 737 max planes.
Attorneys working for the relatives of those lost in the fatal crashes accused the government of offering “another sweetheart plea deal” to Boeing.
"The memory of 346 innocents killed by Boeing demands more justice than this,” said Paul Cassell, who represents multiple families of the crash victims.
Meanwhile, Birkenstock (NYSE:BIRK) saw its shares lift close to 4% after analysts at UBS upgraded it to a 'buy', citing higher prices and demand in Asia as a reason for stronger growth.
Chewy, the pet food retailer, lifted more than 9% after it was revealed meme stock trader Roaring Kitty, had developed a 6.6% stake in the company.
German inflation slows more than expected
German inflation decelerated faster than expected in June, in a sign that price rises have started to ease and increasing the likelihood for more European rate cuts this year.
The consumer price index in Germany dropped from 2.4% in May to 2.2% in June, according to official figures from the country's statistics agency.
Markets had forecast a 2.3% rise, while core inflation, which outstrips volatile energy and food prices, rose by 2.9% in June.
Franziska Palmas at Capital Economics said: "The German data, together with figures for France, Italy, Spain and Portugal released last week, suggest that eurozone headline HICP inflation fell a bit more than expected in June, from 2.6% to 2.4%.
"Overall, slow disinflation in the core and services categories is consistent with our view that the ECB will cut rates only gradually.
"We continue to forecast a pause in July and two more cuts this year, taking the deposit rate to 3.25%."
Boeing given week to admit fraud charges
Boeing has been handed an ultimatum by the US justice system: admit to fraud charges or face a public trial for the two fatal crashes of 737 max planes.
The US Department of Justice said Boeing will have until Friday to admit its guilt.
Should Boeing accept the plea, it will have to pay £192 million (US$244 million) in criminal fines and be put under a three-year probation period, according to multiple reports today.
Admitting to a criminal charge could also affect the aircraft maker's partnerships with the US military.
Wall Street to open higher
US stocks are on track to start the first day of the second half higher as economists predict the AI-driven surge to continue throughout summer.
All three of the main indexes were on track to open higher, attempting to offset losses on Friday and continue the strong pace set in the first six months of 2024.
During the first half, the S&P 500 jumped 14.5%, the Nasdaq lifted by 18.1% while the Dow Jones, having suffered a pullback in the second quarter, rose by 3.8%.
On the talk of tech-driven momentum, analysts believe it is here to stay, at least for a while.
“We don’t see a lot of evidence of tech slowing,” King Lip, at BakerAvenue Wealth Management said to CNBC.“If anything, you could argue that it’s accelerating.”
“The reality is that these companies have been so well managed through thick and thin, that during times like this when the economy is growing, they’re able to grow their earnings quite significantly."
Olympics to deter tourists from trips to Paris
Tourists are expected to avoid Paris this summer as the Olympic Games take place, with Air France warning that its sales will drop due to fewer passengers flying to the capital.
The airline expects to take a £150 million hit this summer because of the decline in tourists travelling to the city, with many expected to avoid it due to the busy nature of the Olympics.
Around 15 million visitors are expected to watch the Olympics live, two million of which will be travelling from outside of France, the Centre for Law and Economy of Sport revealed.
However, there is concern the major tourist destination will be avoided.
Air France said: "International markets show a significant avoidance of Paris.
"Travel between the city and other destinations is also below the usual June-August average as residents in France seem to be postponing their holidays until after the Olympic Games or considering alternative travel plans."