Marks & Spencer Faces £60m Hit from Cyberattack

Marks & Spencer is expected to report a loss of over £60 million in profits following a cyberattack last month that disrupted online ordering. The pound and euro strengthened further against the US dollar, reaching two-week highs, as investors continued to sell the dollar despite rising Treasury yields. Focus today will also be on UK inflation data, expected to show CPI rose to 3.3% in April, and on further corporate earnings including JD Sports.

Equities

The FTSE 100 rose 0.94% on Tuesday to reach a two-month high, lifted by strong earnings updates across several sectors. Diploma led the index, climbing 15.1% to an all-time high after raising its full-year organic revenue growth forecast. Vodafone shares gained 7.3% after the company projected growth in its key German market. Smiths Group added 4.4%, saying it expects annual organic revenue growth at the top end of its guidance. Barclays rose 1.2% following the appointment of Marc Warm, a former UBS executive, as global co-head of capital markets.

In the FTSE 250, Gregg’s jumped 9.2% after reporting sales growth had picked up through the year. Cranswick was up 3.8% after annual pretax profits came in ahead of expectations. Investors also kept an eye on comments from the Bank of England’s Chief Economist Huw Pill, who warned that the central bank had moved too quickly on rate cuts despite ongoing wage pressures. Focus now turns to the upcoming UK inflation figures due Wednesday.

In the US, equities slipped following six straight sessions of gains for the S&P 500. The index fell 0.39% to 5,940.46, while the Dow dropped 0.27% to 42,677.24. The Nasdaq declined 0.38% to 19,142.71. Yields on US 10-year Treasuries rose slightly to 4.481%, drawing attention as investors assess the country’s growing debt profile. The Dow and Nasdaq both broke short winning streaks, with eight of the S&P 500's 11 sectors finishing lower.

Tesla rose 0.5% after Elon Musk confirmed at a forum in Qatar that he remained committed to staying on as CEO for the next five years. In contrast, Home Depot fell 0.6% despite beating Wall Street expectations for first-quarter sales, reversing earlier gains. Nvidia shares slipped ahead of its upcoming earnings report on 28 May. The company remains in focus given its significant role in the semiconductor sector.

Moody’s, Fitch, and S&P Global Ratings have all downgraded the US sovereign credit rating, citing concerns over rising federal debt, now at $36.2 trillion. Meanwhile, traders now anticipate the first of two expected Federal Reserve rate cuts to take place in September.

Forex & Commodities

The US dollar slipped to a two-week low against the yen on Tuesday, trading at 144.095 before settling at 144.495, following cautious remarks from Federal Reserve officials and renewed doubts over President Trump’s proposed tax-cut bill. The dollar index has now fallen over 10% from its January peak, with pressure mounting after Moody’s downgraded the US sovereign credit rating last week. Traders are watching for potential currency discussions between US and Japanese officials at the upcoming G7 summit, after Japan’s finance minister reaffirmed that both countries agree excessive currency volatility is undesirable.

The pound rose 0.2% to $1.3387, building on a 0.6% gain from Monday, supported by a wide-ranging agreement between the UK and EU, covering trade and defence. The euro also strengthened, up 0.3% to $1.1279, while the Swiss franc advanced 0.6% against the dollar, taking it to 0.8295.

Gold prices rose to a one-week high as the weaker dollar and political uncertainty in Washington supported demand. Spot gold increased by 0.5% to $3,305.39 an ounce, with US gold futures climbing 0.7% to $3,307.30. The ongoing debate in Congress over the Trump tax bill has highlighted fiscal concerns. Analysts suggested that gold could push towards $3,500 in the coming months if political risk persists. Palladium reached its highest level since early February before easing 1.2% to $1,001.41, while silver fell 0.1% to $33.03 and platinum slipped 0.7% to $1,046.70.

Oil prices jumped over 1% amid reports that Israel may be preparing a strike on Iranian nuclear facilities. Brent crude for July rose by 1.5% to $66.35, while US WTI for July added 1.6% to $62.99. Traders remain alert to possible supply disruptions in the Middle East, particularly through the Strait of Hormuz. Separately, US crude inventories rose by 2.5 million barrels last week, while Kazakhstan’s oil output increased by 2% this month, despite OPEC+ pressure to limit production.