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Yahoo
11-06-2025
- Business
- Yahoo
Pound dips ahead of Rachel Reeves' spending review
The pound slipped 0.1% lower against the dollar on Wednesday morning, trading at $1.3477 at the time of writing, ahead of the UK government spending review. Reeves is due to deliver the spending review at 12h30 BST on Wednesday, when she will set out government departmental budgets for the next few years. The chancellor is expected to unveil a £39bn boost to funding for affordable housing, a £15.6bn investment in public transport, a £11.5bn pledge for the Sizewell C nuclear project, as well as more spending on the national health service (NHS), defence and schools. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Focus will be trained on bond market reaction to chancellor Rachel Reeves' plan to boost capital spending on infrastructure but keep a tighter rein on the day-to-day spending of departmental budgets, while ringfencing funding increases to health and defence." She said that the yields on 10-year and 30-year government bonds, known as gilts, "which are watched closely for any signs of a bond market strop out, have dropped back in recent days." "It may partly be due to a weakening labour market raising hopes that forecasts for more interest rate cuts will stay on track," Streeter said. "But so far, the headlines released about spending commitments appear to have kept investors in UK government debt on side, but details will be dug through, particularly when it comes to capital spending commitments." Read more: Spending review - live: Rachel Reeves expected to unveil more funding for schools, NHS and defence Streeter said that investors were also weighing the World Bank's cut to its global economic growth forecast. The Washington-based lender said on Tuesday it now expected global growth to slow to 2.3% in 2025, which is nearly half a percentage point lower than the rate that had been expected at the start of the year. While the World Bank said a global recession was not expected, it said that if forecasts for the next two years materialised, average global growth for the first seven years of the 2020s would be the slowest of any decade since the 1960s. Streeter said that there was "some optimism" about the outcome of the latest trade talks between the US and China but pointed out this was "largely an agreement to stick to the previous plan for compromise". The US dollar index ( which measures the greenback against a basket of six currencies, hovered around the flatline at 99.11. The pound was also little changed against the euro (GBPEUR=X) on Wednesday morning, trading at €1.1809. Gold prices rose on Wednesday morning, as investors weighed concerns around economic growth and the developments on trade. Gold futures (GC=F) climbed 0.5% to $3,358.40 per ounce at the time of writing, while the spot gold price advanced 0.7% to $3,345.51 per ounce. US and Chinese negotiators said overnight that they had a agreed on a framework deal to restore their trade truce. Read more: FTSE 100 LIVE: Stocks rise as traders await UK spending review and US-China trade update Richard Hunter, head of markets at Interactive Investor, said: "Details of the framework which has been agreed in principle were patchy and in any event yet to be signed off by both presidents. "Chinese exports of rare earth minerals are likely to have been high on the agenda, although at this stage it has not become apparent what China may have negotiated in return," he said. "Even so, the two days of talks represent progress and the hope is now that the more conciliatory momentum can be maintained." Oil prices gained on Wednesday morning, amid signs of progress on US and China trade talks. Brent crude futures (BZ=F) rose 0.3% to $67.09 a barrel, while West Texas Intermediate futures (CL=F) climbed 0.4% at $65.26 a barrel. News of another trade truce between the US and China offered some relief for investors, as concerns that a tariff-induced economic slowdown could impact demand for fuel have weighed on oil prices. Stocks: Create your watchlist and portfolio That said, concerns around economic growth remained in focus, on the back of the World Bank's latest forecasts. Hargreaves Landown's Streeter pointed out that brent crude dipped earlier in Wednesday's session, which came "amid the forecasts of clouds gathering over the global economy". "An industry report from the US Energy Information Administration also indicated there's set to be a larger build up in oil stocks this year, than it expected just a month ago," she said. In broader market movements, the FTSE 100 (^FTSE) was up 0.3% to 8,875 points at the time writing. For more details, on broader market movements check our live coverage here. Read more: The UK's rental boom is over What you need to know about UK's private stock market Pisces Stocks to watch this week: TSMC, Adobe, Tesco, Bellway and InditexError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
Oil dips as OPEC+ hikes yet to translate into output increase
Oil (CL=F, BZ=F) prices dipped on Monday, heading lower as concerns around supply and the state of geopolitics continues to move markets. By 9am in London, West Texas Intermediate had dipped to around $64.20, before bouncing back up to trade around 0.2% lower than the previous session. Brent crude (BZ=F) also dipped around 0.2% to trade near the $66.33 mark. The end of last week saw a rally for the viscose commodity, as US non-farm payroll data came in hotter than expected. Investors are, this week, eyeing OPEC+ output decisions as well as ongoing trade discussions between the US and China. OPEC+ production hikes are yet to translate into actual output gains, analysts at Morgan Stanley said. 'Notwithstanding the around one million-barrel-a-day increase in production quotas between March and June, an actual increase in production is hard to detect,' analysts including Martijn Rats said in a June 9 note, according to a Bloomberg report. 'Notably, it does not appear that production in Saudi Arabia has ramped up significantly.' US-China trade discussions will be on traders minds going into this week, with both economies having a large baring on oil consumption. Sterling headed higher against the dollar, up around 0.3% to trade around $1.356 on Monday morning. Gains recoup losses at the end of last week, where the pound retreated from its highest point since 2022. For the year-to-date the pound has rallied 8.1% against the world's reserve currency, as investor confidence in the US and its leadership has been shaken by wide-ranging tariff policy. The dollar index ( which tracks against a basket of currencies, was 0.3% lower. For the year-to-date that index is down 8.8% so far. Delegations from the US and China are meeting in London today to discuss the future of the pair's so-far fractious trading relationship. The delegation, including commerce secretary Howard Lutnick, is meeting Chinese representatives such as vice premier He Lifeng. Chinese exports of rare earths, which are crucial for modern technology, as well as Beijing's access to US products, including computer chips, are on the laundry list of expected topics. The pound also rallied 0.1% against the euro to 1.187. Gold (GC=F) prices hovered on a flatline in Monday's trading session, following a dip at the end of last week. The heat has come out of gold's rally as the US irons out its trading relationships with key partners and volatility softens. "It is a short-term gold tug-of-war," said Nadir Belbarka, analyst at XMarabia. "Firm economic news has moderated some of the need for a hawkish tone, but has not eliminated dovish desires. Lacking a top-line economic release today, gold's trend is more dictated on sentiment than on concrete facts." Any escalation in hostility with trade discussions between the US and China could push the price up again, added Belbarka. "Conversely, a strong Fed tone in forthcoming speeches would keep prices on a consolidating stance above levels of $3,300/oz, prior to mid-week CPI releases," he said. Gold futures were trading around $3,344.30 per ounce by mid-morning. Spot gold's price was slightly higher, up 0.4% to trade around $3,320. For the year-to-date, the yellow metal has gained 28.3%. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
Oil dips as OPEC+ hikes yet to translate into output increase
Oil (CL=F, BZ=F) prices dipped on Monday, heading lower as concerns around supply and the state of geopolitics continues to move markets. By 9am in London, West Texas Intermediate had dipped to around $64.20, before bouncing back up to trade around 0.2% lower than the previous session. Brent crude (BZ=F) also dipped around 0.2% to trade near the $66.33 mark. The end of last week saw a rally for the viscose commodity, as US non-farm payroll data came in hotter than expected. Investors are, this week, eyeing OPEC+ output decisions as well as ongoing trade discussions between the US and China. OPEC+ production hikes are yet to translate into actual output gains, analysts at Morgan Stanley said. 'Notwithstanding the around one million-barrel-a-day increase in production quotas between March and June, an actual increase in production is hard to detect,' analysts including Martijn Rats said in a June 9 note, according to a Bloomberg report. 'Notably, it does not appear that production in Saudi Arabia has ramped up significantly.' US-China trade discussions will be on traders minds going into this week, with both economies having a large baring on oil consumption. Sterling headed higher against the dollar, up around 0.3% to trade around $1.356 on Monday morning. Gains recoup losses at the end of last week, where the pound retreated from its highest point since 2022. For the year-to-date the pound has rallied 8.1% against the world's reserve currency, as investor confidence in the US and its leadership has been shaken by wide-ranging tariff policy. The dollar index ( which tracks against a basket of currencies, was 0.3% lower. For the year-to-date that index is down 8.8% so far. Delegations from the US and China are meeting in London today to discuss the future of the pair's so-far fractious trading relationship. The delegation, including commerce secretary Howard Lutnick, is meeting Chinese representatives such as vice premier He Lifeng. Chinese exports of rare earths, which are crucial for modern technology, as well as Beijing's access to US products, including computer chips, are on the laundry list of expected topics. The pound also rallied 0.1% against the euro to 1.187. Gold (GC=F) prices hovered on a flatline in Monday's trading session, following a dip at the end of last week. The heat has come out of gold's rally as the US irons out its trading relationships with key partners and volatility softens. "It is a short-term gold tug-of-war," said Nadir Belbarka, analyst at XMarabia. "Firm economic news has moderated some of the need for a hawkish tone, but has not eliminated dovish desires. Lacking a top-line economic release today, gold's trend is more dictated on sentiment than on concrete facts." Any escalation in hostility with trade discussions between the US and China could push the price up again, added Belbarka. "Conversely, a strong Fed tone in forthcoming speeches would keep prices on a consolidating stance above levels of $3,300/oz, prior to mid-week CPI releases," he said. Gold futures were trading around $3,344.30 per ounce by mid-morning. Spot gold's price was slightly higher, up 0.4% to trade around $3,320. For the year-to-date, the yellow metal has gained 28.3%.
Yahoo
06-06-2025
- Business
- Yahoo
Pound takes breather after hitting highest point against dollar since 2022
The pound pulled back slightly against the dollar on Friday in European trading hours, dipping almost 0.3% to trade around the $1.354 mark. Sterling's rally has sent it to its highest point against the greenback since 2022, but that's largely due to dollar weakness, analysts say. 'Domestic factors have also been supportive of sterling," said Matthew Ryan, head of market strategy at global financial services firm Ebury. Read more: FTSE 100 LIVE: Stocks mixed as traders weigh up Trump-Musk row and trade war developments 'This week's updated UK PMI figures provide reason for optimism, as the composite index was revised sharply higher to 50.3 in May (from the initial 49.4 estimate), i.e. back above the key level of 50 that separates growth from expansion. 'As we've been stressing for some time, Britain's economy should be well positioned to weather the tariff storm, while at the same time inflation is printing well above the Bank of England's 2% target." The dollar index ( headed 0.2% higher, meanwhile. The index tracks it against a basket of other currencies. The pound was almost flat against the euro following a Thursday interest rate cut by the European Central Bank (ECB). Read more: Average UK house price falls in May after stamp duty changes The bloc cut interest rates by a quarter of a percentage point for the eighth time in a year, as the bank attempts to support the euro economy after the turmoil caused by US president Donald Trump's trade war. The benchmark rate on the deposit facility has been reduced from 2.25% down to 2%, from a high of 4% toward the middle of 2023. Gold prices headed higher as economic uncertainty persists surrounding president Trump's trade tariffs. The yellow metal rose despite a strengthening dollar. Spot gold prices rose 0.4% to $3,364, while gold futures headed 0.3% higher to trade around $3,384. The weakness in the dollar in recent weeks has made it cheaper for buyers holding other currencies to snap up gold — a safe haven in uncertain times. "There is considerable geopolitical uncertainty with Russia-Ukraine, Iran, Syria and China driving people to buy gold... and although traders may not expect gold to rise as quickly, there is still plenty of upside," Daniel Pavilonis, senior market strategist at RJO Futures told Reuters on Thursday. Oil prices were on the back foot on Friday, pulling slightly lower amid concerns about oversupply and economic growth. Brent crude futures (BZ=F) fell 0.3% to $64.59 a barrel, while West Texas Intermediate futures (CL=F) declined 0.3% at $63.18 a barrel. Read more: The most popular stocks and funds investors bought in May Saudi Arabia has bee pushing for a major increase in oil production and has slashed prices for Asian buyers, signalling weaker demand, analysts said. The July price cut by Saudi Arabia, which is the world's biggest oil exporter, comes after the decision from the Organization of the Petroleum Exporting Countries and their allies — known as OPEC+ — to increase output next in to access your portfolio
Yahoo
05-06-2025
- Business
- Yahoo
Silver prices hit 13-year high as dollar weakens amid tariff uncertainty: 'The breakout has been brewing'
Silver (SI=F) prices surged to 13-year highs on Thursday, breaking above $35 per ounce amid uncertainty over President Trump's tariff policy and the continued decline of the US dollar. Spot silver rose to climb above $35.90, its highest level since February 2012, while futures for July delivery (SI=F) jumped more than 4% to hover above $36 per troy ounce. The move follows a recent resurgence in gold (GC=F) prices, which have been driven by trade policy uncertainty and continued central bank demand buying. "The breakout has been brewing for a while," Maria Smirnova, senior portfolio manager and chief investment officer at Sprott Asset Management, told Yahoo Finance on Thursday. "Silver had attempted to break through the $35 level a couple of times in recent months, so this is highly significant." "Furthermore, if the technical move catalyzes physical investor buying, it can take silver much higher very quickly," she added. The market for silver, sitting just above an estimated $2 trillion, is much smaller than gold's more than $22 trillion. That makes the volatility in silver prices up to two to three times greater than that of gold. Read more: How to invest in gold in 4 steps The precious metal also has industrial uses, from electronics to automobile components to solar panels, making prices susceptible to any imbalance between supply and demand as the US moves to increase domestic manufacturing. "We have been talking for a while about the supply/demand deficits in silver, since 2021 there has been a cumulative 800m oz draw and the deficits are projected to continue. Silver has a very positive investment case right now," Smirnova said. A falling US dollar index ( has also sent the price of silver lower, given the inverse correlation between the greenback and precious metals. The greenback has been under pressure in recent weeks amid weariness over increased fiscal US spending as capital shifts toward currencies and stocks abroad. Trump's proposed tax bill, which is said to raise the debt ceiling by $4 trillion, passed the House last month. Year to date, silver is up more than 23%. Gold has risen 29% over the same period. To be sure, StoneX head of market analysis Rhona O'Connell pointed out that silver is "notoriously volatile and it is fully capable of dropping" as sharply as it rises. "This is not necessarily a false move," O'Connell said, "but it is now heavily overbought and should, as always when silver does this sort of thing, be treated with caution." Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices
