UK large and mid-cap stocks spring into action, Micron soars, BP leads FTSE 100 as oil price hits two-month high and investors poised for inflation data

“Sometimes all it takes is a positive analyst comment to propel a stock and that’s exactly what’s happened with Micron Technology. BofA has added the company to its US 1 List, a collection of its best investment ideas. That action is enough to get investors reaching for the ‘buy’ button,” says Dan Coatsworth, Investment Analyst at AJ Bell.

“While everyone is still talking about Nvidia being the superstar stock to own, Micron has been putting up a great fight. A 133% advance in its share price over the past 12 months might be slightly less than Nvidia’s 204% return over the same period, but it has put Micron on the map of big stock market success stories.

“Micron has enjoyed a stellar run dating all the way back to the start of 2023, exactly the point at which the AI boom broke out of the starting gate and kept on running.

“On the UK market, the FTSE 100 closed 0.6% higher, with BP leading the charge in terms of index points. The energy producer has benefited from a spike in the oil price where Brent Crude jumped 0.9% to just over $85 a barrel, a level that hasn’t been seen since April. Markets have their eye on US stockpiles and whether data later this week will show a decline in inventories.

“The FTSE 250 had an even better day, up 1.2% to 20,409 as investors piled into financial group Investec and gas expert Energean.

“Tomorrow could be a significant day for the UK market as we’ve got May’s inflation figures due at 7am. The consensus is 2% which would put the cost of living bang on target for the Bank of England, thus strengthening the argument to cut rates. But the big unknown is when the Bank will cut. Thursday’s meeting might be too soon and markets certainly don’t expect it to budge.

“The Bank is never quick to do things which implies that August is looking more likely for monetary policy to be loosened, but a lot can happen between now and then so investors shouldn’t hold their breath for that to be the magic date.”

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