24th Nov 2025 08:52
(Alliance News) - Stock prices in Europe opened higher on Monday, with sentiment at the start of the week boosted by Federal Reserve rate cut expectations, and hope that a Russia-Ukraine peace deal can be achieved.
The FTSE 100 index rose 40.01 points, 0.4%, to 9,579.72. The FTSE 250 added 96.20 points, 0.5%, at 21,459.57, and the AIM All-Share was 1.51 points higher, 0.2%, at 737.15.
The Cboe UK 100 was up 0.6% at 957.40, the Cboe UK 250 was 0.7% higher at 18,600.42, but the Cboe Small Companies was down 0.3% at 17,102.53.
The CAC 40 in Paris rose 0.3%, while the DAX 40 in Frankfurt jumped 1.1%.
Sterling rose to USD1.3101 early Monday, from USD1.3084 at the time of the London equities close on Friday. The euro perked up to USD1.1531 from USD1.1501, while against the yen, the dollar rose slightly to JPY156.79 from JPY156.69.
The yield on the US 10-year Treasury faded to 4.06% from 4.07%. The 30-year yield was slimmer at 4.70% from 4.71%.
"Away from politics, the dollar focus this week will be on emerging US data and the release of the Federal Reserve's Beige Book on Wednesday evening. When it comes to data, the September retail sales data released tomorrow should be quite strong, but the market will probably have more interest in the Beige Book. Here, any anecdotal evidence from the Fed's 12 reporting districts that the slowdown in employment is broadening could put the notion of a Fed December rate cut back on the agenda. On Friday, remarks made by New York Fed President John Williams suggesting that he favours another cut in December moved markets," ING analysts commented.
US rate cut hopes were boosted on Friday following comments from New York Fed President John Williams at a conference in Chile.
Despite the stronger than expected September jobs report released Thursday, Williams said that he still sees potential for the bank to ease rates.
"I still see room for a further adjustment in the near term," to move the policy stance closer towards neutral, Williams said.
However, he noted the Fed's progress in lowering inflation to its two-percent goal has "temporarily stalled".
He added that "increased tariffs have contributed about one half to three quarters of a percentage point to the current inflation rate."
According to the CME FedWatch Tool, there is a 71% chance the Fed cuts next month. A week ago, that probability stood at 42%.
In New York on Friday, the Dow Jones Industrial Average added 1.1%, the S&P 500 rose 1.0% and the Nasdaq Composite climbed 0.9%.
In China on Monday, the Shanghai Composite edged up 0.1%, while the Hang Seng Index in Hong Kong jumped 2.0%. The S&P/ASX 200 in Sydney rose 1.3%. Financial markets are closed in Tokyo.
A barrel of Brent rose to USD62.27 early Monday, from USD62.15 at the time of the London equities close on Friday. Gold fell to USD4,061.83 an ounce from USD4,073.57. Gold had traded below the USD4,040 mark earlier on Monday.
In London, Endeavour Mining and Fresnillo as the price of gold came off its daily low. The gold miners rose 4.2% and 2.8%.
Housebuilder Barratt Redrow added 1.8%. Goldman Sachs started coverage at 'buy'.
Eyes will also be on what the budget has in store for housebuilders. Chancellor Rachel Reeves is expected to add some GBP48 million for 350 new planners to boost government efforts to build 1.5 million new homes, PA reported.
Reeves has pledged to "grip the cost of living" in her budget next week.
In an example of one move aiming to ease the pressure on people's finances, rail fares are to be frozen for the first time in 30 years, saving commuters on more expensive routes more than GBP300 a year.
But at the same time Reeves is widely expected to raise taxes on November 26 in an effort to bridge a multibillion-pound gap in her spending plans.
Writing in The Mirror, the chancellor acknowledged that high prices "hit ordinary families most" and that the economy "feels stuck" for too many.
XTB analyst Kathleen Brooks commented: "After a long lead up to this budget, the weekend papers suggest that Reeves will boost public sector spending by GBP15 billion, while hiking taxes on workers, pensioners and homeowners to pay for extra welfare and benefits spending.
"Concerns about how the government will balance the books could force up bond yields, and weigh on the pound as we lead up to this budget. If this does happen, then it could suggest that markets are not convinced by Labour's economic strategy and its ability to generate economic growth. Should the markets lose faith in the chancellor, expect a rocky period for UK assets, especially bonds and the pound."
Back in London, iron ore pellet maker Ferrexpo jumped 23% on the Ukraine peace hope.
Analysts at Deutsche Bank commented: "Perhaps the most significant geopolitical development will be Ukraine's response to the US ultimatum to accept the 28-point peace plan agreed with Russia, with an ultimatum set for before Thanksgiving on Thursday, although the US seem to have indicated over the weekend that there is some room for negotiation."
US Secretary of State Marco Rubio boasted "tremendous" progress after a day of meetings with Ukrainian and European officials in Geneva on a proposal to halt the Ukraine war, but numerous uncertainties remain.
The head of Ukraine's delegation Andriy Yermak also told reporters earlier that the sides had made "very good progress", and were "moving forward to the just and lasting peace Ukrainian people deserve".
By Eric Cunha, Alliance News news editor
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