UK Equity Benchmark Reaches Record High

Sterling fell to a one-week low on Friday after the Bank of England lowered its 2017 growth outlook to 1.90% for the United Kingdom. That development led to a rally in shares of multinational corporations that book most of their profits and sales abroad. Meanwhile, AstraZeneca PLC gained the most since April of 2014 after reporting positive results from its late-stage study of cancer treatment Imfinzi.

Shares of Royal Dutch Shell also contributed to the FTSE 100’s advance, surging on the back of strength in crude oil prices as the likelihood of an oil output cut extension from OPEC later in the month rises. With the index breaking out above the strong resistance around 7370, 7500 looks like the next immediate resistance level on the upside. FTSE 100 futures were last seen above the key psychological level of 7400.

Although CPI inflation pulled back during the latest reading, consumer sentiment in the US surprisingly improved in early May on lower inflation and favorable outlook for wages according to a leading private survey. The University of Michigan's Consumer Sentiment Index recorded a preliminary May reading of 97.7, up from the final April figure of 97.0, beating the consensus estimate of economists of 97.0.

The Index of Current Economic Conditions remained flat for the month at 112.7, while the Consumer Expectations Index edged higher to 88.1 from 87.0 in April. The University of Michigan conducts a monthly survey of about 500 consumers to gauge their attitudes toward personal finances, inflation, interest rates and unemployment. In the meantime, S&P 500 futures are currently perched just below the key resistance at 2400 after sliding lower 4 out of 5 sessions last week.