Daily market update: European stocks, gold, Tesla, DCC

“European markets started back after Easter in steady enough fashion despite a continuing flight from US assets,” says AJ Bell Investment Director, Russ Mould.

“Persistent comments from President Donald Trump, which put the independence of the US Federal Reserve in question, resulted in weakness in the dollar, US Treasuries and Wall Street overnight.

“If the administration is able or willing to follow through on its threat to fire Fed chair Jerome Powell before his term is up next year, it could provoke an even stronger reaction amid fears about the implications for inflation.

“US currency and government debt are often a safe haven during times of market turbulence but, with America the source of much of the recent volatility, investors have been reaching for another obvious port in the storm, gold, in large numbers.

“The precious metal is strikingly above $3,500 per ounce for the first time and gold bugs will be eyeing the $4,000 level only a matter of weeks after the price moved through $3,000.

“Precious metals producers Endeavour Mining and Fresnillo topped the FTSE 100 leaderboard amid gains for other resources names and a smattering of retailers. Sainsbury’s is still in the market’s good books after its well-received numbers last week.

“There was renewed selling in aerospace firms Melrose Industries and Rolls-Royce – seen as being heavily exposed to the aggressive stance on trade from the US. US and tech focused vehicles like Pershing Square, Polar Capital Technology and Scottish Mortgage were also under some pressure.

“Tesla’s quarterly numbers will be in focus later, as investors look to assess the financial impact of the electric vehicle manufacturer’s slumping deliveries. Many have pinned the company’s recent woes on Elon Musk’s controversial involvement in politics in recent times.

“This kicks off a crunch week in the US earnings season with Boeing, Alphabet and PepsiCo among those to report. The focus is likely to be on the outlook provided by management teams rather than the outcome for the first three months of 2025, given economic developments have been on fast forward since the start of April.

DCC

“News the Irish conglomerate DCC is selling its healthcare division gave the stock a bit of a bump as the deal promises a meaningful injection of cash, much of which looks set to be returned to shareholders. It says the deal highlights value within the business and helps simplify its operations.

“The move was not a surprise having been widely telegraphed for several months and focus will now turn to its progress on plans to sell the technology manufacturing and distribution arm.

“The company wants to focus all of its attention on the energy business, which enjoys the strongest returns and accounts for the majority of its revenue. The business is arguably quite well-positioned for the uncertain pace of the transition away from fossil fuels, with expertise which spans areas such as liquid gas, solar energy and service stations.”

These articles are for information purposes only and are not a personal recommendation or advice.