The FTSE 100 and European stocks finished higher ahead of inflation data in the UK and US this week, while Wall Street was mixed.
The FTSE 100 (^FTSE) rose 0.84% to close at 7,422 points, while the CAC 40 (^FCHI) in Paris gained 0.51% to 7,081 points. In Germany, the DAX (^GDAXI) jumped 0.58% to 15,322. The Stoxx 600 (STOXX) advanced 0.67%, aided by healthcare stocks.
Across the pond, US stocks were mixed as investors geared up for a key US inflation reading and a week packed with potential insight on how consumers are holding up in the face of high borrowing costs.
The Dow Jones (^DJI) rose 0.11% to 34,320 points. The S&P 500 (^GSPC) was flat at 4,413 points and the tech-heavy NASDAQ (^IXIC) fell 0.10% to 13,784 points.
US inflation figures are due on Tuesday and investors will be hoping the data backs the growing hopes that interest rates have peaked.
“While it seems improbable that anything less than a significant escalation in the current incoming price data would be sufficient to reconsider the possibility of a rate hike in December, this week’s upcoming inflation figures from the US will likely reinforce the Federal Reserve’s position that it is premature to conclusively determine whether consumer price growth in the world’s largest economy is firmly and sustainably on track to reach the targeted 2%,” SPI Asset Management’s Stephen Innes said.
Read more: UK property asking prices drop by more than £6,000 in November
In the UK, inflation figures are due on Wednesday and there is hope for a significant drop in the headline figure.
The Bank of England expects headline inflation to fall sharply from 6.7% in September to below 5% in October.
In Asia, the Hang Seng (^HSI) in Hong Kong rose 1.23% to 17,414 while the Shanghai Composite (000001.SS) gained 0.25% to 3,046 points. Tokyo’s Nikkei 225 (^N225) finished basically flat, rising just 0.05% to 32,585 points.
Meanwhile, oil prices were lower at the start of the session amid growing concerns about demand and waning geopolitical risk premium but have since bounced back.
West Texas Intermediate (CL=F) rose 1.17% and is trading at $78.07 per barrel. Brent crude (BZ=F) futures advanced 1.20% to $82.41 per barrel.
The pound (GBPUSD=X) was up 0.2% against the dollar on Monday as the Bank of England (BoE) looks set to cut UK interest rates from as soon as May. Against the euro (GBPEUR=X) was was up almost 0.3% on the day, my colleague LaToya Harding writes.
Policymakers are likely reduce rates to 4.25% by the end of next year, according to investment bank Morgan Stanley (MS).
The news will come as a welcome boost to mortgage borrowers who have seen their payments soar.
Stocks slipped to kick off a busy trading week on Monday after US indexes rebounded Friday to close out a second week of gains. The tech-heavy Nasdaq Composite (^IXIC) led the early morning declines, down about 0.4%. The benchmark S&P 500 (^GSPC) fell roughly 0.3%, while the Dow Jones Industrial Average (^DJI) shed about 0.2%, or roughly 50 points.
OPEC has lifted its forecast for world oil demand growth this year, slightly. It now expects demand to rise by 2.46 million barrels per day, up from 2.44m b/d forecast previously.
OPEC said current negative market sentiment has been exaggerated, adding that the global economy and demand has been more resilient than first thought.
Oil has weakened to just under $82 a barrel for Brent crude from a 2023 high in September near $98.
The weakness in the price has been triggered by concerns about economic growth, despite support from supply cuts by OPEC and its allies, as well as conflict in the Middle East.
UK business confidence falls to lowest in 2023 despite easing inflation
Worries about the effects of interest rate hikes on consumer spending and borrowing, saw optimism in the UK service sector fall to 36%, my colleague LaToya Harding writes.
Petrol station giant EG Group has announced it is to acquire ultra-fast electric vehicle (EV) chargers from manufacturer Tesla (TSLA).
EG, run by Asda owners Mohsin and Zuber Issa, said the chargers will be branded evpoint and will be available to all electric vehicle drivers.
Tesla will provide the charging hardware and technology for EG to install.
The car maker’s so-called Superchargers are popular among EV drivers for their reliability and speed.
They could initially only be used to charge the company’s cars, but have been available to drivers of all electric vehicle brands in the UK since a trial in November last year.
Trending tickers: The latest investor updates on Tesla, BAE Systems, Tullow Oil and British Land
My colleague LaToya Harding gives us the latest investor updates on stocks that are trending on Monday.
Retail park and office investor British Land (BLND.L) is forecasting strong growth in commercial rents next year thanks to “resilience in the UK economy”.
The commercial landlord said its pre-tax losses more than doubled from £20m to £49m in the six months to the end of September, compared with the same period last year. However, it expects its full-year performance to be at the “top end” of previous guidance amid hopes the UK is approaching peak interest rates.
The London-listed landlord owns an £8.7bn portfolio of properties including retail parks, warehouses and London offices.
The FTSE 100 has extended its early gains, now up 0.77% to 7,416 points.
Susannah Streeter, head of money and markets at Hargreaves Lansdown said:
“The FTSE 100 has found a dose of Monday motivation amid hopes that peak interest rates have been reached, despite warnings about America’s huge debt pile and ongoing geo-political fracture.”
“British Land has helped cement a more upbeat mood, helped by the performance of its retail parks portfolio,” she said.
“Results appear to have spread wider cheer about the resilience of the UK economy, with the company expecting rents for commercial property to rise next year,” she added.
In the week ahead, investors will face a schedule full of updates on the health of the US consumer as the holiday shopping season kicks into high gear. My colleague Josh Schafer writes:
The October Consumer Price Index (CPI) report out Tuesday will bring investors a key inflation reading after several Federal Reserve officials last week tried to keep the door open for future rate hikes.
Big box retailers including Home Depot (HD), Target (TGT), and Walmart (WMT) will highlight a slate of corporate earnings heavily focused on the consumer, with Macy’s (M), TJX Companies (TJX), and BJ’s Wholesale (BJ) also set to release results. The October read on retail sales out Wednesday morning will also offer a key read on the state of the consumer.
Questions over the health of China’s economy will make results from Alibaba (BABA) and JD.com (JD) closely watched.
Sellers are dropping property asking prices in order to secure a sale. Photo: Getty
Asking prices for UK homes have dropped 1.7% in November as sellers cut prices to attract a buyer.
New sellers listed their homes for £362,143 on average in November — £6,088 less than the previous month, according to property site Rightmove.
Asking prices usually drop in November as sellers price more competitively in the lead-up to Christmas. However, the 1.7% drop in asking prices is the largest in five years for this month.
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