Netflix Beats Forecasts as Weak Dollar Lifts Exports

Netflix shares rose after earnings topped forecasts, helped by a weaker dollar which boosted its overseas revenue. Wall Street closed higher again on Thursday, with the Nasdaq up 0.74%, the S&P 500 gaining 0.54%, and the Dow rising 0.52%. Meanwhile, Japan’s Nikkei dipped ahead of Sunday’s upper house election, as political risk weighed on Japanese markets and the yen slipped 0.7% this week.

Equities

The FTSE 100 rose 0.5% on Thursday, lifted by company earnings and signs of a slightly cooler labour market. The FTSE 250 added 0.8%, closing at its highest level in over three years.

Ocado led gains on the midcap index, jumping 18.5% after the online grocer and logistics technology group reported a 76.5% rise in first-half underlying earnings. The company said it expects to turn cash positive in the next financial year. EasyJet dropped 4.9% after warning that strikes by French air traffic controllers and higher fuel costs would weigh on its annual profit.

Diploma rose 6.4% to a record high following an upgrade to its full-year organic revenue growth forecast. In contrast, Coats Group fell 12.3% after announcing it would acquire US insole maker OrthoLite for $770 million including debt, which raised concerns about the scale of the deal.

Labour market data showed UK wage growth slowed in June, while employment numbers declined. However, the figures suggested the cooling jobs market was not as severe as feared. Despite higher inflation in June, which reached 3.6%, traders see a 77% chance of an interest rate cut by the Bank of England next month.

On the other side of the Atlantic, US markets also finished higher on Thursday. The S&P 500 added 0.54% to close at 6,297.36, and the Nasdaq gained 0.74% to end at 20,884.27, each setting fresh record highs. The Dow Jones rose 0.52% to 44,484.49.

PepsiCo jumped 7.5% after forecasting stronger results, driven by demand for energy drinks and low-sugar sodas. United Airlines climbed 3.1% after projecting improved demand since early July, despite wider industry pressures. Delta and American Airlines both rose over 1.4%. Technology shares were also higher.

Nvidia rose 1% and Marvell gained 1.6% after Taiwan’s TSMC posted a record quarterly profit, saying AI chip demand continues to grow. TSMC’s US-listed shares were up 3.4%.

Netflix rose 1.9% before reporting earnings above forecasts, helped by the final season of Squid Game. The financials sector led the S&P on the day with a 0.9% gain, while both the technology and industrials sectors closed at record highs.

Forex & Commodities

The dollar index is heading for a 0.64% weekly gain, following strong US retail sales data and a drop in weekly jobless claims. It touched 98.951 on Thursday, its highest since late June, before settling around 98.456. Retail sales rose 0.6% in June, reversing a 0.9% fall in May. Initial jobless claims dropped to 221,000 - below economists’ forecasts of 235,000.

These figures have reinforced expectations that the Federal Reserve will hold off on cutting interest rates again in the short term. However, concerns remain after President Trump publicly criticised Fed Chair Jerome Powell and reports briefly circulated that Trump was considering firing him. Although the White House denied this, the dollar briefly weakened midweek on the back of the speculation.

The pound edged up 0.13% to $1.3436 on Friday but remains 0.41% lower over the week. The euro rose 0.25% to $1.1626, trimming its weekly loss to 0.59%. Against the yen, the dollar held at 148.60, up 0.73% this week, ahead of Japan’s upper house elections on Sunday, which may see the ruling coalition lose its majority.

Gold prices were flat at $3,337.60 per ounce on Friday but have fallen 0.5% over the week, pressured by the stronger dollar and firm US data. Platinum rose to $1,458.80—its highest since 2014—while palladium climbed 1% to $1,293.32, the highest in nearly a year.

Brent crude rose 0.4% to $69.81 a barrel on Friday, with WTI up 0.42% to $67.81. Both remain down more than 1% for the week. Oil output in Iraqi Kurdistan has halved after four days of drone attacks, supporting prices despite broader market caution around US trade policy and the approaching end of the peak summer demand season.