Morning Note: A round-up of market news.
Market News
US equities finished higher on Friday – S&P 500 (+1.0%); Nasdaq (+0.9%) – as traders increased bets on an interest-rate cut by the Federal Reserve next month. Big tech was mostly higher, in particular Google owner Alphabet adding to its strong recent performance. In Asia this morning, equities were also firm: Hang Seng (+2.0%); Shanghai Composite (+0.1%). Japan was closed because of a holiday.
New York Fed President John Williams said he fully supported the central bank’s two recent interest-rate cuts and signalled he could support another move “in the near term” to put rates closer to a neutral setting that neither spurs nor restrains the economy. 10-year Treasury yields slipped to 4.06%, while gold trades at $4,065 an ounce.
The FTSE 100 is currently 0.5% higher at 9,575, while Sterling trades at $1.3095 and €1.1360. With all eyes are on Wednesday’s Budget, 10-year gilts yields current sit at 4.53%. PM Starmer vowed there will be no austerity and that the budget will reflect Labour values, while Chancellor Reeves aims to ease living costs and further cool inflation. CEOs have warned they’ll cut back on UK investment if the Chancellor increases costs for their businesses.
Brent Crude settled below $62 a barrel amid latest Russia-Ukraine headline volatility. Marco Rubio said Donald Trump’s 27 November deadline for Ukraine to support a US-backed peace plan may be eased after talks in Geneva between American and Ukrainian officials.
Italy was upgraded by Moody’s for the first time in more than 23 years, climbing a notch to Baa2 with a stable outlook. It’s a victory for Giorgia Meloni, who may face a broad centre-left opposition alliance in the next general election, due by 2027.
M&A speculation remain heated in the commodity sector. BHP walked away from a new takeover approach for Anglo American after its smaller rival rejected it. Anglo decided the proposal was not superior to its plan to combine with Teck.
Source: Bloomberg
