Halfway through the year, markets have been significantly influenced by US technology stocks. The Nasdaq 100 index climbed 17%, primarily due to its major constituents being linked to artificial intelligence and semiconductors. These sectors are benefiting from the early adoption of disruptive technologies. In contrast, the French CAC 40 index saw a slight decline over the half-year, indicating less robust performance in other areas.
In the US, the Public Expenditure Consumption Index, the Federal Reserve’s preferred measure of inflation, reached its lowest point in three years at 2.6% in May. The trend suggests a steady movement towards achieving the target of 2%.
Consumer behaviour demonstrated its unpredictability when Nike’s fourth-quarter results revealed disappointing sales. The company’s guidance for the coming year fell below expectations, resulting in a 20% drop in its share price. However, some market analysts believe these poor results may be the last as Nike adapts to changing consumer preferences. Similarly, Levi Strauss experienced slow sales growth, with shares falling 16% despite projecting a 1-3% sales increase for the full year. These trends indicate a shift in consumer tastes in footwear and jeans.
Discussions about holidays, particularly cruise line vacations, have become common. This trend is reflected in Carnival, the world’s largest cruise liner company, announcing a 20% increase in profit guidance and 100% occupancy rates. Consequently, Carnival shares rose by 17%.
Steve Lansdowne, a wealthy Channel Island resident and co-founder of Hargreaves Lansdown (HL), recently described the £11 billion+ private equity bid for HL as ‘something to consider.’ However, several major shareholders argue that the Abu Dhabi Investment Company-backed bid is unfair and believe the board should explore other strategic options. The private equity consortium has until 19 July to make a formal bid or withdraw.
The first half of the year has been marked by significant movements in US technology stocks, contrasting performances in global markets, and notable shifts in consumer behaviour and preferences. As discussions continue around significant business deals and market strategies, the coming months will be crucial in shaping the financial landscape.
TEAM plc (LON:TEAM) is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM’s core skill of providing investment management services.
