The FTSE 100 and European stocks opened slightly higher this Monday following a rally last week amid hopes that interest rates have peaked.
The FTSE 100 (^FTSE) made a subdued start, rising by only 0.10% to 7,425 points, while the CAC 40 (^FCHI) in Paris climbed 0.11% to 7,055 points. In Germany, the DAX (^GDAXI) advanced 0.04% to 15,197. The Stoxx 600 (STOXX) climbed 0.14% at the open after jumping more than 3% last week.
Across the pond, stocks closed higher on Friday as a cooling in jobs growth reinforced hopes that the Federal Reserve is done with its rate-hiking campaign
The Dow Jones (^DJI) gained 0.66% to close at 34,061 points. The S&P 500 (^GSPC) rose 0.94% to finish at 4,358 points and the tech-heavy NASDAQ (^IXIC) climbed 1.38% to 13,478 points.
S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green as trade began in Europe.
Uber (UBER) and Lyft (LYFT) are among the major names reporting earnings this week. Instacart (CART) is also scheduled to report after going public in September. Disney (DIS), Robinhood (HOOD) and eBay (EBAY) are also slated to post earnings.
Yahoo Finance’s Brent Sanchez has the week ahead with what investors need to watch in the US:
Back in London, the FTSE 100 was helped by a surge in aerospace and defence stocks.
Melrose Industries (MRO.L) gained 3.74% after the aerospace supplier said GKN Aerospace Engines business expanded its partnership with GE Aerospace.
Investors are also waiting on economic data to assess the strength of the British economy.
“In Europe, today’s services PMIs are expected to reinforce this weak demand outlook, having already had sight of the flash numbers from Germany and France at the end of October,” CMC Markets analyst Michael Hewson said.
All eyes will be on the UK GDP this week, which is expected to show a contraction of 0.1pc on a monthly basis in September, compared with growth of 0.2% a month ago.
Across the FTSE 250 (^FTMC), Ryanair (RYA.IR) shares made their largest gain since January after the airline announced its first ever dividend.
In Asia, Hang Seng (^HSI) in Hong Kong rose 1.68% to 17,960 while the Shanghai Composite (000001.SS) climbed 0.91% to 3,058 points. Japan’s Nikkei 225 (N225) gained 2.37% to 32,708.
However, Japan’s services activity expanded at the slowest pace this year in October, a business survey showed on Monday, reinforcing concerns about weakness in a key sector driving Japanese economic activity.
Meanwhile, Brent crude (BZ=F) rose as turmoil continued in the Middle East to trade at around $85 per barrel.
Watch: Berkshire Hathaway, Disney, Fed: What to watch this week
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