FTSE 100 today: London markets braces for caution ahead of UK inflation data

Moving markets today: Asia opens cautiously amid US stock boost from Trump, bitcoin surge, and Goldman Sachs exceeding expectations; Asian currencies weaken on strong US dollar, Bank of America earnings in focus 

US stocks closed just below their all-time highs, buoyed by consecutive days of gains across the major indices, which renewed the recent rally on Wall Street. Meanwhile, Hong Kong’s markets extended losses after Donald Trump announced JD Vance as his running mate, known for his tough stance on China. Bitcoin continued its rise, gaining 1.6 per cent, while Asian currencies weakened against the dollar. Oil prices dipped on concerns over Chinese demand, and gold edged higher on optimism about potential US interest rate cuts. Goldman Sachs reported profits that exceeded expectations, driven by strong performance in debt underwriting. In the UK, construction companies are grappling with significant recruitment challenges, according to a survey by the BCC. BlackRock achieved a record-high $10.65 trillion in assets due to increased flows into ETFs and rising stock prices. This week, China is hosting the Third Plenum in Beijing, focusing on important policy discussions. In the US, major firms such as Bank of America, Morgan Stanley, Netflix, and Taiwan Semiconductor Manufacturing are preparing to release their second-quarter earnings reports. Economic attention is also on the European Central Bank’s upcoming rate decision, along with inflation updates expected from Britain and Japan.

Here are five key takeaways for your day. 

Goldman Sachs exceeds expectations with strong profit from debt underwriting

Goldman Sachs reported a significant increase in profit for the second quarter, exceeding analysts’ expectations. The strong performance was driven by robust activities in debt underwriting and fixed-income trading.  

However, the earnings were slightly lower compared to the exceptionally high first quarter of the year, which had marked the firm’s highest profits since 2021.  

Specifically, Goldman Sachs recorded earnings of $3.04 billion, equivalent to $8.62 per share, for the three-month period ending June 30. This figure slightly surpassed the average analyst estimate of $8.34 per share. 

British construction firms grapple with severe recruitment challenges: BCC survey

A recent survey highlights that construction and engineering companies in Britain are particularly struggling due to a shortage of workers.  

This poses a significant obstacle to Prime Minister Keir Starmer’s plans to ramp up construction projects and infrastructure development.  

The survey by the British Chambers of Commerce (BCC) indicates that 82 per cent of these businesses are encountering challenges in recruiting staff, an increase from 69 per cent earlier this year. 

BlackRock’s assets soar to record $10.65 trillion

BlackRock reported on Monday that its assets under management soared to a record $10.65 trillion in the second quarter, fueled by rising client asset values and a substantial influx of investments into its exchange-traded funds.  

Revenue from its technology services, particularly the Aladdin investment risk management platform, saw a 10 per cent increase to $395 million.  

The company’s overall revenue grew by 8 per cent to $4.81 billion. Net income for the quarter ending June 30 climbed to $1.50 billion, or $9.99 per share, compared to $1.37 billion, or $9.06 per share, in the same period last year. 

What’s coming up

This week, China’s spotlight is on the Third Plenum, which runs from Monday to Thursday in Beijing.  

The spotlight this week will be on UK consumer prices and producer prices data, as the Bank of England moves closer to its next monetary policy decision. 

The US sees a busy second-quarter earnings season, with big names like Bank of America, Morgan Stanley, Netflix, and Taiwan Semiconductor Manufacturing set to release their reports.  

Important economic updates are also expected, including the European Central Bank’s rate decision, likely to remain unchanged but possibly provide future guidance. 

Asian shares drop amid China’s economic slowdown

The Dow Jones Industrial Average rose 0.53 per cent to 40,211.72, the S&P 500 gained 0.28 per cent to 5,631.22 and the Nasdaq Composite added 0.40 per cent to 18,472.57. 

Shares of Macy’s Inc dropped 11.7 per cent after the department store scrapped buyout talks with Arkhouse Management and Brigade Capital. The prospect of a second Trump presidency sent shares of Trump Media & Technology Group soaring 31.4 per cent. 

In Asia, Japan returned from a public holiday, with the Nikkei index up 0.4 per cent. The Shanghai Composite index fell 0.3 per cent, while Hong Kong’s Hang Seng index lost 1.4 per cent, having already dropped 1.5 per cent the day before soft economic data from China heightened the risk that Beijing could miss its 5 per cent growth target this year, barring forceful stimulus. 

In commodity markets, gold rose 0.2 per cent to $2,426.18 an ounce, nearing a two-month high. Oil prices ticked down on worries about a slowing Chinese economy crimping demand.  

Brent futures fell 0.2 per cent to $84.72 a barrel, while US West Texas Intermediate (WTI) crude also slipped 0.2 per cent to $81.77.