Chip selloff dents tech this week while oil holds firm on stalled Hormuz talks
This week @ 1536 pm Friday 5th June in London.
Markets:
- FTSE 100 was flat, falling 0.11% to 10,397.8, as losses in banking and mining stocks offset resilience elsewhere. Halifax data showing a second consecutive monthly house price decline added to the cautious domestic tone.
- S&P 500 was flat, rising 0.06% to 7,584.3. A Broadcom-led chip selloff weighed on the index Friday, offset by gains in healthcare and financials.
- Nasdaq Composite fell 2.26% to 26,362.5, its sharpest weekly decline in recent months, as Broadcom’s revenue miss triggered broad selling in semiconductor and AI-exposed names.
- Euro Stoxx 50 edged up 0.09% to 5,195.5, with markets in a holding pattern ahead of next week’s ECB decision.
Bonds:
- UK 10-year gilt yields rose 8.0bps to 4.91%, as renewed US-Iran tensions kept oil and inflation expectations elevated. Markets price two BoE hikes this year.
- US 10-year Treasury yields rose 9.8bps to 4.54%, after May payrolls came in at 172,000, more than double the 85,000 consensus, reinforcing the higher-for-longer rate view.
Commodities:
- Brent crude rose 2.51% to $93.41/bbl, as Iran halted ceasefire negotiations and threatened to fully close the Strait of Hormuz, keeping the supply-risk premium in place.
- Gold fell 4.18% to $4,400.8/oz, as the strong payrolls print firmed the dollar and pushed real yields higher, offsetting safe-haven demand.
- Copper fell 0.77% to $6.34/lb, as a risk-off tone in tech and weak European industrial demand weighed on the metal.
FX:
- GBP/USD was flat, edging up 0.08% to 1.3465, with sterling holding its ground against a stronger dollar.
- GBP/EUR rose 0.26% to 1.1569, with sterling outperforming ahead of the ECB hike and the diverging near-term rate outlook.
Macro:
- US May payrolls: 172,000 jobs added, well above the 85,000 consensus. Unemployment held at 4.3%; average hourly earnings +3.4% year-on-year. Rate cut expectations for 2026 now fully priced out.
- US-Iran: Iran halted negotiations via intermediaries and threatened to fully close the Strait of Hormuz in response to alleged ceasefire violations. No breakthrough reached; diplomatic talks continue through Pakistan.
- ECB: Euro-area inflation hit 3.2% in May, its highest in over two years. ECB’s Schnabel cautioned it is too early to define a terminal rate.
- UK housing: Halifax reported a 0.1% fall in house prices in May (second consecutive monthly decline), with annual first-time buyer growth slowing to 0.3%.
Company news:
- CrowdStrike (CRWD): Q1 FY2027 results beat estimates and guidance was raised, but the stock sold off sharply on a 15% year-on-year rise in operating expenses and concerns over rising competition in AI-driven cybersecurity.
What we will be keeping an eye on next week…
w/c 8th June 2026
- ECB rate decision (Thursday 11th June): 25bp hike to 2.25% expected; focus on guidance for the pace and terminal rate of the hiking cycle.
- Iran-US diplomatic developments: Any progress or deterioration on Hormuz negotiations will remain the primary driver of oil and bond markets.
- SpaceX IPO (Nasdaq, 12th June): Planned listing at a $1.75tn valuation – the largest IPO in history. Index inclusion to follow.
Markets move constantly and the numbers in this update will change. This is a snapshot only, pulled together from a range of sources, and is meant as a quick guide rather than a precise record. It’s not investment advice and shouldn’t be used to make trading or investment decisions. If you need more accurate or specific data over a defined period, please get in touch with a member of the team who will be happy to help.
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