- FTSE marginally down.
- Experian takes advantage of fallen share price with a new buyback.
- US stock futures slide over software fears.
- Gold on track for best month since the 1980s.
- Oil prices head for best month in over two years.
- Apple’s sales impressed, but the lack of AI clarity holds back the shares.
Aarin Chiekrie, equity analyst, Hargreaves Lansdown:
The FTSE 100 opened marginally down this morning, but there was little in the way of big UK stock news to nudge it in either direction. UK-based data and tech company Experian announced a new $1bn share buyback program this morning, commencing immediately. That’s clearly in response to its roughly 20% share price decline year-to-date as the baby’s seemingly been thrown out with the bathwater, on fears of increased competition. Underlying trends at the business remain strong, so this looks like an opportunistic way to create value for current shareholders.
With earnings season now in full swing, US stock futures slipped lower as software names continue to lose ground over fears that AI will disrupt their businesses. Case in point being a 10% drop for ServiceNow over fears that AI can automate and optimise business workflows better. Microsoft also ended the session down 10% as spending surged to a record high and Azure growth failed to wow markets, despite growing at a blistering 38% in the quarter. Salesforce and Oracle shares also slipped lower in the session, suffering from the risk-off tone across the sector. Meanwhile, Meta bucked the trend with its shares rising more than 10% as sales growth and next quarter’s guidance were enough to placate investors’ concerns over its ballooning investment plans, for now.
Gold prices have slid more than 5% this morning to around $5,150 per ounce, as investors look to take some profits. Still, the yellow metal remains on track for a monthly gain of over 20% – its strongest performance since the 1980s. Not bad for an asset that has little to no real-world utility and produces nothing, unlike farmland or businesses that can produce food, goods and cash.
Brent Crude prices slipped slightly lower on Friday morning to $68 per barrel. But the black stuff remains on track to record its best monthly gains since July 2023, amid rising geopolitical tensions in both Venezuela and Iran. US President Donald Trump has called for Iran to engage in nuclear talks, while Iran has threatened retaliation. If this spills over into military conflict, it could put further upward pressure on oil prices, not only to over 3 million barrels of daily oil production, but also disruption to tankers carrying oil and Liquid Natural Gas through the Strait of Hormuz”
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“Apple delivered a standout iPhone quarter, but investors came away wanting more – specifically, a clearer AI story. Markets were expecting a good quarter for the iPhone, but weren’t expecting to see China firmly back in the mix as a major source of strength. With services steady and Apple continuing to spend light while buying back stock aggressively, a clear divergence is emerging between Apple and the other tech giants.
The outlook for the March quarter was better than analysts had forecast, but not quite enough to shift the overall mood. Apple is still wrestling with parts shortages and rising component costs, which adds some caution to an otherwise upbeat guide.
What’s really keeping a lid on things is Apple’s slow progress in AI, a gap that now feels pivotal to close. Investors are looking for practical, AI-powered products that genuinely move the needle – something Apple Intelligence hasn’t delivered. Customers remain fiercely loyal to the brand, but shareholders want to see a clearer plan and real execution, which likely explains why the stock barely budged despite a strong quarter. There’s still a great opportunity at hand for Apple to show it can lead again, not just follow.”
