Tech Stocks Lead Global Markets Higher Amid Strong Earnings and Hawkish Fed Comments

The FTSE 100 closed down 4.13 points at 9,132.81, despite strong earnings from Microsoft and Meta, while the FTSE 250 closed 186.25 points higher at 21,962.83. The Cboe UK 100 ended down slightly at 912.08, the Cboe UK 250 rose 1.0% to 19,287.49, and the Cboe Small Companies closed down 0.2% at 17,398.70. Stocks in London had opened brightly after strong earnings in London and from two of the Magnificent Seven on Wall Street.

The FTSE 100 closed down 4.13 points at 9,132.81, despite strong earnings from Microsoft and Meta, while the FTSE 250 closed 186.25 points higher at 21,962.83. The Cboe UK 100 ended down slightly at 912.08, the Cboe UK 250 rose 1.0% to 19,287.49, and the Cboe Small Companies closed down 0.2% at 17,398.70. Stocks in London had opened brightly after strong earnings in London and from two of the Magnificent Seven on Wall Street.

The FTSE 100 was buoyed by positive earnings reports from several companies, including Rolls-Royce, which surged more than 9% after raising its full-year profit guidance [1]. However, the index was dragged down by weaker-than-expected earnings from Shell and Unilever, as well as a broader sell-off in mining and housebuilding stocks. The FTSE 250, on the other hand, was lifted by strong earnings from companies like Rentokil Initial and Next PLC, which reported impressive first-half results.

The pound extended its decline, falling 0.1% against the dollar to 1.32, reflecting investor concerns about the UK economy and the Bank of England's monetary policy [1]. The euro also weakened against the dollar, with the single currency trading at $1.1556.

The US dollar index (DXY) was up 0.1% at 108.75, with the greenback benefiting from a strong jobs report and the Federal Reserve's commitment to raising interest rates. The 10-year Treasury yield eased to 4.33%, while the 30-year yield slimmed to 4.87%.

Investors will be closely watching the earnings reports from Apple and Amazon later in the day, as well as the trade deal between the US and South Korea, which could have significant implications for global markets.

References:

[1] https://www.investing.com/news/stock-market-news/ftse-100-today-index-rises-on-earnings-rally-pound-drops-further-to-132-4163315
[2] https://uk.finance.yahoo.com/news/ftse-100-live-stocks-earnings-reports-markets-082136510.html
[3] https://www.sharesmagazine.co.uk/news/shares/early-market-roundup-ftse-100-struggles-as-miners-housebuilders-fall