Market Volatility Continues as Investors React to Trump's Win
The FTSE 100 (^FTSE) ended the day in green on Monday, while European markets were mixed by the closing bell, following a dip last week where investors took profits off the table. US markets were also tepid, as concerns set in over president-elect Donald Trump's win in the US, with traders looking to implications of a potential trade war and inflationary policies possibly changing the Federal Reserve rate cut path.
The FTSE 100 (^FTSE) had risen 0.5% by the end of the day. Aerospace manufacturer Melrose Industries (MRO.L) led the index higher, up as much as 8% following a mixed earnings report. Melrose said that revenue had grown 7%, but that it was experiencing supply chain issues when obtaining some key parts. The company expects its cashflow situation to improve in 2025.
The DAX (^GDAXI) in Germany lost 0.2% for the day, while the CAC 40 (^FCHI) in France slipped 0.1%. In the US, the Dow Jones Industrial Average (^DJI) traded lower by around 100 points, while the S&P 500 (^GSPC) was down around 15 points.
Crude Oil Prices Firm Up
Crude oil prices were firmer on Monday, as traders looked to a potential supply shortage in the Middle East. The Brent crude price rose 0.5% to $67.50 per barrel, while the WTI crude price gained 0.3% to $65.20.
Gold Prices Head Higher
Gold prices saw a modest uptick on Monday, following a sharp decline last week, as the dollar's recent rally faltered. Traders are now looking ahead to remarks from Federal Reserve officials later this week for further direction on the US interest rate outlook.
UK Consumer Confidence Slips in November
The latest S&P Global reading has shown consumer sentiment slipping in the UK, as job security dips and strains remain on household finances. A key concern going forward will be the labour market, with rising incomes and busier workplaces having underpinned much of the improvement in consumer sentiment over the past two years.
Shein Eyes 2025 IPO
Singapore-based clothing manufacturer Shein is targeting next year for a public listing, according to a report in The Times. The investor roadshow is expected before the end of the year, with its IPO prospectus to follow.
Trump Trades Drop Off
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. The situation was muddied further by Federal Reserve comments last week suggesting that the central bank is in no rush to reduce interest rates at pace.
Average UK House Prices Drop by £5,366 as Post-Budget Jitters Set In
Data shows the average price of a UK property coming to market is down 1.8% this month, or the equivalent of a £5,366 discount, as the cost of a home swoops to £366,592. This marks the second month of higher than average declines on the trot, with the usual drop seen at this time of year being 0.8%, according to property portal Rightmove.
US Stocks Look Set for a Mixed Day
US stock futures were mixed on Monday, with the Nasdaq and S&P 500 looking set to recoup some losses from Friday's steep declines. The Dow Jones Industrial Average was down around 50 points in premarket trading.