Daily market update: Currys, asian markets wobble and awaiting US job data

Asian markets wobbled on renewed fears around excessive AI spending and whether all the good news for the chip supply firms was fully priced in.

European markets managed to keep their cool and push ahead as investors rotated away from tech into more defensive-style sectors. Healthcare and utilities were in demand, with AstraZeneca doing a lot of the heavy lifting for the FTSE 100.

Investors will be watching the US jobs market like a hawk. Expectations are low for jobs expansion, but any significant beat or miss has the potential to be a market-moving event. Jobs and inflation are at the heart of the Federal Reserve’s interest rate decisions, and investors are desperate for any clues into what the Fed might do next.

Currys

There’s nothing like an edge of your seat England game at the World Cup to make people want to upgrade their TV to have a bigger screen. Many sports fans have already upgraded their TV for the tournament, and England’s nail-biting victory against DR Congo could keep the tills ringing for Currys if it shifts more tellies.

Electrical retailers typically see a sales boost from big sports tournaments and it’s no wonder that TVs have been central to Currys’ recent TV advertising campaign. However, the company reported a ‘soft’ TV market in the 12 months to 2 May so a World Cup-related sales boost would provide relief on this front.

It’s an area to watch next time Currys reports, with the retailer saying that overall trading so far in the new year has been ‘very solid’. For now, investors are focusing on the facts, and they aren’t entirely happy.

The TV weakness is certainly a moot point. It might have just been a matter of timing, with Currys’ year-end happening too far away from the start of the tournament to influence sales.

The company also flagged macro uncertainty, and Apple’s recent price hikes on multiple products imply that other electronics items could become more expensive as manufacturers seek to pass on higher raw material costs. That creates an element of uncertainty in terms of consumer ability or willingness to buy more expensive items.

Currys enjoyed strength elsewhere, including solid demand for AI-enabled laptops as individuals and businesses look to upgrade their kit and take advantage of the latest technology. The dividend is stronger than the market expected, and a new £50 million share buyback has been initiated.

This is a business in decent health and is demonstrating it can fight off competition from online-only operators and stay relevant to shoppers. As technology becomes more sophisticated, so does the need for help and advice which is where Currys has found a sweet spot.