Notable historical closure capitres FTSE 100 recovery
The FTSE 100 achieved a historical closure above 9,000 points for the first time in its 41 years of history yesterday, ending very slightly above this historical level. This represents a significant psychological and technical milestone for the Britain reference index, marking remarkable progress from the level of 8,000 that was only exceeded last year.
The achievement highlights the resilience of the actions of the United Kingdom despite the ongoing economic challenges and political uncertainty. The main components, including energy giants, banks and basic consumer products, have contributed to this constant rise throughout the year.
The corporate developments of the United Kingdom promote market confidence
Several significant corporate ads have supported the positive feeling around the United Kingdom markets. Centrica confirmed its agreement to take a 15% capital participation in the proposed Sizewell C nuclear project, committing £ 1.3 billion in construction funds together with the 44.9% participation of the United Kingdom government.
This investment represents a great support of the future of Nuclear Energy of Great Britain and aligns with the net ambitions of the country. The project aims to replace nuclear aging facilities while providing low carbon electricity generation in the coming decades.
Meanwhile, Astrazeneca announced plans to invest $ 50 billion in the United States before 2030, focusing on the manufacture and development of research. The commitment of the pharmaceutical giant includes establishing a new installation in Virginia to produce its weight loss medication.
The activist investor Elliott has intensified the pressure on the newly appointed president of BP, Albert Manzold, to address the operational challenges in the major oil. The investor highlighted the successful history of manifest in CRH and requested urgent improvements to cost management priorities and capital allocation.
Budget deficit concerns weigh on sterling
The United Kingdom reported a budget deficit of £ 20.7 billion for June, which represents the highest level since April 2021 and that exceeds the forecasts of economists. The highest interest payments of the debt promoted the increase, and the total payments reached £ 16.4 billion due to a large extent to the golden adjustments linked to the index.
Total loans during the first three months of the fiscal year reached £ 57.8 billion, approximately £ 7.5 billion higher than the previous year. These figures are likely to promote speculation about possible tax increases at the end of this year to prop up public finances.
The increase in loans reflects broader economic pressures faced by the United Kingdom government as infrastructure investment needs against fiscal responsibility balances. Interest payments on government debt continue to increase, creating additional restrictions on the flexibility of public spending.
Sterling weakened the main currencies after the announcement of the deficit, and investors express concern about the sustainability of current indebtedness levels. The decrease in pound can provide some support for FTSE 100 exporters, but ask questions about imported inflation pressures.
American markets maintain a record impulse
On the other side of the Atlantic, the US variable rental markets continued their record career, with the S&P 500 and Nasdaq 100 moving the newest of all time. Alphabet led the position between Megacap technology actions, increasing 2.7% before its quarterly earnings.
The magnificent group seven groups of technological giants once again led a broader index performance, with Apple and Amazon contributing significantly to general profits. This concentration continues to raise concerns about the amplitude of the market, although the technical indicators suggest improving participation beyond the largest actions.
Verizon provided a remarkable brilliant point outside the technological sector, increasing more than 4% after increasing its annual gains prognosis. The orientation update of the telecommunications company suggests that its 5G infrastructure investments can finally generate improved yields for shareholders.
However, imminent tariff threats continue to create uncertainty, with the deadline of August 1 for possible 30% import tariffs that weigh in trade sensitive sectors. Companies face greater scrutiny during gain calls on possible interruptions of the supply chain and cost implications.
Independence of the Federal Reserve under pressure
The growing speculation about possible changes in the leadership of the Federal Reserve (FED) has emerged as another source of market volatility. The reports suggest that the incoming administration may consider replacing President Jerome Powell, asking questions about the independence of the Central Bank and the Directorate of Future Monetary Policy.
Powell’s scheduled speech this week will be closely monitored for any comment on political pressure or policy posture changes. The historical precedent suggests that the markets react badly to the threats perceived to fed independence, potentially creating significant commercial opportunities for positioned merchants.
Uncertainty comes at a critical moment as markets weigh inflation concerns against growth prospects. Any weakening of the credibility of the Fed could have long -range implications for the fortress of the US dollar, the yields of the bonds and the assessments of global capital.
