- FTSE 100 opens lower
- US investors buy the dip
- UK pay growth slows to two-year lows
- Apple unveils the iPhone 16
Matt Britzman, senior equity analyst, Hargreaves Lansdown
“The FTSE 100 has opened lower this morning, giving up some of yesterday’s gains and failing to tag on to the mini rally seen last night across the pond after a poor start to September. Last week was tough, with both the S&P 500 and Nasdaq down 4.25% and 5.89%, respectively, but given the lack of any real catalysts, investors are clearly seeing this weakness as an opportunity to buy the dip. US inflation data out on Wednesday is going to be the main focal point of the week, and probably the only thing that could shift the market view on how bold the Fed will be at next week’s rate meeting, where a 0.25% cut is the current best guess.
UK pay growth slowed to a two-year low in the three months to July, a good sign that some of the sticky elements of inflation are starting to play ball. Private sector pay growth is the number the Bank of England tends to focus on, and at a two-year low of 4.9%, this should keep things on track for another rate cut in November, but won’t be enough of a catalyst to drive up the chances of back-to-back cuts next week.
Apple’s new product suite has arrived, led by the new iPhone 16, with Apple Intelligence and its AI offering at the heart of the latest proposition. The new iPhone is really another example of Apple lacking any real innovation on the hardware side of things. Aside from the usual upgrades to performance and cameras, there are not a whole lot of new toys on offer, but that probably doesn’t matter. This next upgrade cycle is all about software, and the AI-enabled features rolling out over the coming year have the potential to transform how we interact with mobile devices. Apple doesn’t need to reinvent the wheel on the hardware side if it can capture hearts and minds with Apple Intelligence, and there’s a huge trove of consumers waiting for a reason to upgrade, this is that moment.
Brent oil futures are hovering around $71.5 per barrel, washing away gains from earlier in the week. Demand concerns from China, and an expected consumption slowdown as summer comes to an end in Europe and the US continue to lead the narrative, despite some supply issues from a storm in the Gulf
