FX.co ★ FTSE 100 Rises in Short Trading Week

The FTSE 100 experienced a 0.8% increase on Tuesday, bouncing back robustly after the Monday holiday, fueled by positive developments in trade relations between the US and the European Union. UK stocks outshone their European counterparts as they recovered from the continent's previous gains. This uplift in sentiment was anchored by optimism that enhanced trade ties may bolster global economic growth. Nevertheless, domestic signals were mixed, casting some uncertainty. The British Retail Consortium (BRC) reported the highest annual food inflation, partly attributed to rising employer tax burdens. In contrast, the Confederation of British Industry (CBI) noted a decline in retail confidence, marking its lowest point since the onset of the pandemic. Concurrently, the International Monetary Fund (IMF) advised Shadow Chancellor Rachel Reeves to meticulously follow fiscal guidelines in her upcoming June 11 Spending Review, while slightly adjusting upwards the UK's 2024 growth forecast to 1.2%. In the equities market, AstraZeneca saw a 0.8% increase following the European Union regulators' recommendation for the approval of its cancer treatment, Imfinzi. Conversely, HSBC experienced a slight decline amid reports of impending job cuts in its analyst division aimed at enhancing operational efficiency.