Rate cut optimism boosts UK markets and Apple falls as US files lawsuit

“Considering nothing actually changed today, it feels like a lot has happened,” says Danni Hewson, Head of Financial Analysis at AJ Bell.

“London markets have had a sublime day, with the FTSE 100 closing at a 10-month high as investors grow increasingly optimistic that rate cuts are on the way.

“The MPC might have held firm for a fifth meeting in a row but the simple fact that two of the most hawkish members have joined the hold camp has put a spring in investors’ steps. The number of blue-chip fallers was in single figures, with all sectors enjoying the tailwinds of central bank confidence.

“It didn’t hurt that high street darling Next delivered another barnstorming performance, showing exactly how a smart retailer should navigate tricky times.

“Both it and Marks & Spencer have demonstrated the power of a true omnichannel offer and despite their size have demonstrated an admirable nimble quality to their offer and pricing.

“It’s often said that Next can be used as a barometer for consumer sentiment, but the business has gone beyond that, edging out weaker competitors with many like Ted Baker unable to keep the pace.”

Apple

“Apple’s share price has taken another knock today after the US attorney general formally announced the filing of a landmark lawsuit against the smart phone giant.

“Global regulators have been wary of big tech’s dominance and the past couple of years have seen governments testing the waters as they seek to ensure competition can at least get a foot in the door.

“Behemoths like Apple have given consumers mind blowing technological advances but there have been growing concerns about the ultimate costs of allowing too few companies to gain too much global dominance.

“Apple denies it’s squashed rivals and has vowed to fight its case hard. But there is a sense that an era of light touch regulation is long gone and with so much focus on the potential good and bad that could come from AI developments, that will be viewed by many as a good thing.”

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