Morning Note: A Round-up of Market News.
Israel and Hamas agreed to terms for the release of all hostages held in Gaza. Donald Trump told Fox News that he expects the hostages will be released “probably” on Monday. Trump said to Axios he will likely travel to Israel in coming days. Brent Crude ($66 a barrel) and gold ($4,030 an ounce) slipped slightly as the agreement eased the market’s risk premium. The dollar rose.
The IRS will furlough about 34,000 workers — just under half of its staff — and pause most taxpayer services. The yield on the 10-year US Treasury fell to around 4.11%, sliding for the third straight session as investors awaited new policy cues from the Federal Reserve after the latest FOMC minutes signalled a divided outlook. The minutes from the September meeting showed members agreed that risks to the labour market had risen enough to justify a rate cut but remained cautious about persistent inflation.
Emmanuel Macron said he’ll name a new PM by tomorrow evening, after avoiding a snap election for now. France’s outgoing premier Sebastien Lecornu said progress has been made for a compromise in parliament.
US equities finished higher last night – S&P 500 (+0.6%); Nasdaq (+1.1%) – to notch a fresh record close. Big tech was mostly higher with NVDA the notable Mag 7 gainer. Laggards included energy and large-cap banks. In Asia this morning, markets were also firm: Nikkei 225 (+1.7%); Hang Seng (+0.2%); Shanghai Composite (+1.3%).
The FTSE 100 is currently 0.3% lower at 9,525. HSBC is down 6% in early trading following the announcement of plans to bid $14bn for the 37% of Hong Kong’s Hang Seng Bank that it doesn't already own. The company believes the deal represents a better use of capital than share buybacks, which will be suspended for three quarters to allow HSBC to lift its common equity ratio.
UK real estate agents turned pessimistic for the first time in two years amid fears of tax increases, according to a RICS survey. The UK government has proposed paying up to 25% more for medicines bought by the NHS to stop drugs groups quitting the UK. Sterling trades at $1.3360 and €1.1510.
A First Brands creditor is pushing for a probe into how $2.3bn disappeared. BlackRock and others are weighing withdrawals from a Jefferies fund tied to the auto-parts maker’s debt.
