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The FTSE opened 1.13% higher as all sectors, except utilities (-0.77%), started the weekly race in green.
Banks, construction, healthcare and mining stocks continue their journey north on the back of the surprise Trump-win.
HSBC (+1.23%) and Barclays’ (+2.92%) remain bid, on the back of a spectacular weekly rise in US and global bond yields. The US 30-year yields hit 3% for the first time since January, leading banks to see the end of the tunnel, as higher yields finally suggest a period of relief for the financial services sector that has seen its revenues heavily squeezed by the low-to-negative yield environment over the past years.
Rio Tinto (+2.48%) and Glencore (+2.31%) lead gains, despite a downgrade at Bank of America Merrill Lynch, after the recent stock rally pushed the sector into overbought territory.
Fresnillo (-1.60%) and Randgold Resources (-2.02%) continue bleeding, as gold slides to $1212. High US and global bond yields keep investors focused on interest rate instruments, rather than the yellow metal.
Shire (+1.51%), AstraZeneca (+1.92%) and GlaxoSmithKline (+0.91%) stretched higher on prospects of larger revenue streams from the US market, after the Trump win threatened Obamacare and the price accessibility of many drugs.
Taylor Wimpey (+2.75%) released a positive outlook as trading during the second half of 2016 and into the Autumn selling season has been strong according to the company’s chief executive, ‘with good levels of customer confidence and demand underpinned by a wide range of mortgage products.’ The low rate environment has certainly tempered the Brexit shock; nonetheless, risks to the historical low rate environment could pick up along with rising inflationary pressures, and a more hawkish Bank of England policy stance. The majority of investors remain buyers (58.82%), 35.29% stay on hold with a twelve month target price set to 183.73p; 5.88% prefer to sell.
The US dollar opened the week firmer against all of its G10 peers. The dollar’s rally against the yen sent the Nikkei (+1.71%) to nine-month highs.
Chinese industrial production and fixed asset investments came roughly in line with expectations, while retail sales unexpectedly fell to 10% in October. We have seen a mixed reaction in Chinese equity markets; Hang Seng lost 1.37%, while Shanghai’s Composite gained 0.45% and stepped above the 3200 handle for the first time since the Dec’15-Jan’16 rout.
European markets look set to turn lower at the start of trading on Monday. The new US and Chinese tariffs take effect today so traders in Asia and Europe look cautious. Both continents are more exposed to global trade than the US. For markets, the new tariffs …Read more
Whilst risk sentiment has been healthy across the week, this swelling optimism boosted US stock markets to an all-time high overnight. A rally in tech stocks, which have done a lot of lifting for the indices over the year, in addition to fading concerns over U…Read more
Despite a shaky end to trading on Wall Street overnight, which saw the Dow gain 0.6%, the S&P just 0.1% and the Nasdaq slip by the same, Asian markets moved broadly higher on improved sentiment. European bourses are taking the lead from the US over Asia, w…Read more
Asian markets took the lead from Wall Street overnight, rallying as the latest tit for tat measures in the escalating trade spat have not been quite as severe as the markets had been expecting. Tech stocks were also heavily in demand, bouncing back after steep…Read more
Traders are faced with a sea of red in risk-off trading as markets are set to open on Tuesday. Despite the fact the market has been expecting an escalation in trade tensions between the world’s two largest economies with further tariffs from Trump; the reality…Read more
Escalating trade tensions will once again be a central theme to driving sentiment and trading this week, with President Trump widely expected to levy tariffs on a further $200 billion worth of Chinese imports, potentially as soon as today. The elevated trade c…Read more
European bourses are set to take the lead from a positive session on Wall Street and Asia overnight. A drive higher from tech stocks on Wall Street helped lift Asian equities after their recent battering, pulling them off 2-year lows.
Asian markets were endin…Read more
Today will be a busy day for traders with 2 central bank rate decisions and US inflation data all due for release within a few hours of each other. The BoE monetary policy announcement will kick things off, followed shortly after by the ECB rate announcement a…Read more