PMIs and Nvidia boost the UK market

PMI data in the UK and Europe came in way below expectations yesterday, so much so that investors cheered the numbers, thinking central banks will think twice before raising rates again to avoid damaging the economy further. Oil prices fell on demand concerns while gold rose. The FTSE gained 0.7%, while the yield on 10Y Gilts dropped 16 bps.

Overnight, AI champion Nvidia posted strong results, which lifted sentiment further. Personal goods outperformed.

British energy services firm Hunting fell 4.6% after it announced the sale of further non-core exploration and production assets to slash costs.

Life insurers Aviva and Legal & General were also down, since they reached their ex-dividend date.

Meanwhile, Harbour Energy dropped 1.7% after it narrowed the range of its annual production outlook.

Things to read today:

Powell is Using Jackson Hole as Final Push in Inflation Fight (Bloomberg)

Nvidia’s AI boom exceeds Wall Street’s lofty expectations (Financial Times)

Top UK CEOs handed 16% pay rise as millions of workers squeezed (The Guardian)