18th Nov 2024 09:00
(Alliance News) - Stock prices in London opened higher on Monday, ahead of comments by Bank of England Governor Andrew Bailey and UK inflation readings later this week.
Meanwhile, Swissquote's Ipek Ozkardeskaya commented: "US retail sales and the inflation data came in higher than expected last week, and the Federal Reserve Chair Jerome Powell said that the US economy is strong enough and that there is no urge for rushing to rate cuts...Yet activity on Fed funds futures still gives around a 65% chance for a 25bp cut in December, hinting that there is room for a further hawkish adjustment for December bets.
"Even if the next jobs data disappoints, rising US inflation expectations will likely tame the expectation of further rate cuts. This is especially true with Trump's pro-growth policies and hefty tariffs threatening to give an additional boost to inflationary pressures."
She added: "The week's economic data is light, investors will find a window to digest and breath after hectic weeks since the US election."
Household hopes for energy bills in Great Britain to edge lower in January look set to be dashed as the latest prediction shows a rise at the start of next year.
Energy consultancy Cornwall Insight said it expects Ofgem to reveal on Friday that the typical household's energy bill will rise by 1.1%, or GBP19, to GBP1,736 from GBP1,717 on January 1.
Cornwall Insight had previously predicted a 1.2% fall to GBP1,697, but said this was now no longer the case, coming as a blow after prices rose by 10% in October.
UK market participants will be waiting for consumer price and producer price index readings on Wednesday, which will also see the interest rate call from China.
The FTSE 100 index opened up 18.36 points, 0.2%, at 8,081.97. The FTSE 250 was up 43.75 points, 0.2%, at 20,520.39, and the AIM All-Share was up 0.63 points, 0.1%, at 727.77.
The Cboe UK 100 was up 0.2% at 812.52, the Cboe UK 250 was up 0.1% at 18,015.42, and the Cboe Small Companies was up 0.2% at 15,882.98.
Melrose led the FTSE 100, rising 7.7%.
It said revenue rose on-year in the four months to October 31, with Engines division revenue jumping 17%, and expects to deliver its GBP700 million 2025 adjusted operating profit target.
B&M European led the laggers, losing 2.4%.
It announced a GBP250 million senior secured notes offering due 2031, which it said will support store expansion and inventory amid shipping disruptions.
RBC meanwhile has cut its price target for B&M to 500 pence from 550p, but maintained its 'outperform' rating.
Over on AIM, TruFin was up 11%.
The holding company expects 2024 revenue of over GBP42 million, more than double last year's GBP18.1 million and "significantly ahead of market expectations". It is also on track for its first positive Ebitda result.
In the medium term, TruFin said it expects to record its first annual pretax profit in 2025, followed by "significant top-line growth" in 2026.
In European equities on Monday, the CAC 40 in Paris was marginally higher, while the DAX 40 in Frankfurt was up 0.2%.
The pound was quoted at USD1.2619 early on Monday in London, down compared to USD1.2639 at the equities close on Friday. The euro stood higher at USD1.0548, against USD1.0538. Against the yen, the dollar was trading higher at JPY154.83 compared to JPY154.72.
In Asia on Monday, the Nikkei 225 index in Tokyo was down 1.1%. In China, the Shanghai Composite was down 0.5%, while the Hang Seng index in Hong Kong was up 0.8%. The S&P/ASX 200 in Sydney closed up 0.2%.
In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.7%, the S&P 500 down 1.3% and the Nasdaq Composite down 2.2%.
"The Trump trade faltered further at the end of last week, as investors switched attention to the economic implications of the new regime," said interactive investor's Richard Hunter. "The twin concerns of reigniting inflation and deepening the nation's debt have quickly risen to the surface, while the likelihood of US "exceptionalism" and any number of trade wars, most notably with China, have taken the steam out of the post-election rally...Although the markets are still pricing in a cut for December, the rate of reductions for next year has now slowed significantly."
Brent oil was quoted at USD70.85 a barrel early on Monday, down from USD72.08 late Friday.
Gold was quoted higher at USD2,586.00 an ounce against USD2,569.63 on Friday.
Still to come on Monday's economic calendar, there are trade balance readings from Spain and the eurozone.
By Emma Curzon, Alliance News reporter
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