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The FTSE 100 hit another record high on Monday, ahead of a week dominated by central bank meetings and tech earnings.
The FTSE 100 index rose 8.20 points, or 0.1%, to 9,653.82. Earlier, it had made a new intra-day high of 9,672.74.
The FTSE 250 fell 17.54 points, or 0.1%, to 22,511.48, and Objective The All-Share fell 4.66 points, 0.6%, to 772.60.
The market got a boost from fruitful trade talks between the world’s two largest economies. China And America.
Joshua Mahoney at Scope Markets said weekend talks between U.S.-Chinese negotiators produced a “significant breakthrough” with the U.S. Treasury secretary. Scott Besant Announcing that a “substantial framework” had been agreed.
That framework covers a wide range of issues, including export controls, tariff suspensions, fentanyl-related tariffs and agricultural trade.
“While the Trump-Xi meeting is always likely to be the result of significant groundwork done by their negotiating teams, there is hope that the two leaders can negotiate in a more cordial tone than in recent weeks,” he said.
In Europe on Monday, the CAC 40 in Paris closed up 0.2%, while the DAX 40 in Frankfurt closed up 0.3%.
Stocks were higher in New York at London’s close. The Dow Jones Industrial Average was up 0.5%, the S&P 500 was 1.0% higher, and the Nasdaq Composite advanced 1.6%.
The yield on US 10-year Treasuries was reported at 4.02%, up from 4.00% on Friday. The yield on the US 30-year Treasury was 4.59%, up from 4.58% on Friday.
On Wall Street, this week’s focus is on Wednesday’s interest rate decision and earnings from five of the ‘Magnificent 7’. AmazonAlphabet, Apple, Meta Platform and Microsoft, which were hit by losses after the market closed on Wednesday and Thursday.
Despite the lack of data due to the federal government shutdown, the Federal Reserve is expected to lower interest rates on Wednesday and possibly make another quarter-point cut in December.
Morgan Stanley said: “Limited data availability may not prevent the Fed from lowering its policy rate again in October and signaling that another cut in December is likely, but it may limit how far the rate guidance extends back to the end of last year.”
After a 25 basis point cut on Wednesday, the investment bank expects further cuts in December, January, April and July, with a terminal rate of 2.75%-3.00%.
The pound was priced at $1.3331 at the close of London equity markets on Monday, up from $1.3301 on Friday.
The euro rose to $1.1639 from $1.1631. Against the yen, the dollar was trading at 153.04 yen, higher than its high of 152.79 yen.
on FTSE 100, HSBC Fell 0.3% as it said it would set aside $1.1bn (£0.82bn) following an adverse court ruling relating to the Bernard Madoff investment fraud.
This provision will be included in the third quarter results to be released on Tuesday.
Madoff, who died in a North Carolina prison in 2021, admitted defrauding thousands of investors of approximately $65 billion (£48.7 billion) through a Ponzi scheme.
Shore Capital banking analyst Gary Greenwood commented, “It’s not a great headline and was unexpected, but the overall financial impact is not significant in investment terms.”
But other banking shares rose, with Standard Chartered up 3.2%, Lloyds Banking up 2.3%, and NatWest and Barclays both up 1.9%.
Analysts at JPMorgan (JPM) believe the sustainability of earnings generation and strong capital at UK domestic banks remain “underappreciated” with valuations lower than European peers.
“In our view, concerns over changes in hedge income are premature, while we also see ‘reasonable’ tax increases accompanying the Budget, allowing investors to re-engage with the sector,” JPM said, adding that the outlook for distributions is “solid”.
But Centrica fell 1.4% as Citi downgraded British Gas owner British Gas to ‘hold’ from ‘buy’.
“With the stock now approaching our unchanged 185p price target, with no immediate upside catalysts, UK politics and some concerns gathering for Centrica Energy (full year), plus our more cautious view of the commodity outlook, we are struggling to see much upside,” analyst Jenny Ping wrote in a research note.
Safe haven gold retreated due to a more ‘risk-on’ mood, leading to both Fresnillo and Endeavor Mining falling 5.0%. On the FTSE 250, Hochschild Mining fell 5.2%.
On Monday, gold traded at $ 3,993.32 an ounce, which was at $ 4,125.47 on Friday.
James Luke, senior portfolio manager, gold and commodities at Schroders, said it was “a natural correction within a multi-year bull market”.
“We view this bull market as incomparable with previous bull markets in terms of the breadth and depth of potential monetary demand. If, as we see it, this is the ‘Mount Everest’ of gold bull markets, while we are well into the foothills, there is still a long climb left to reach the summit,” he said.
Back on the FTSE 250, Goodwin surged 33% after announcing a special dividend and saying it expected its annual profit to double.
The Stoke-on-Trent, Staffordshire-based engineering and manufacturing company said for the financial year to April 30, it expected to report pre-tax trading profit of £71 million, double the previous year’s £35.5 million.
The special dividend, totaling 532 pence per share, was to “acknowledge and reward shareholders for their long-term commitment”, Goodwin said.
Brent oil traded at $65.99 a barrel on Monday, down from $66.56 late Friday.
The biggest risers on the FTSE 100 were Standard Chartered, up 45.5p at 1,470.5p, Polar Capital Technology Trust, up 10.5p at 460.5p, Lloyds Banking Group, up 1.98p at 87.84p, St James’s Place, up 30.0p at 1,369.0p and Burberry, up 29.0p. Were. At 1,325.5p.
The biggest decliners on the FTSE 100 were Endeavor Mining, down 160.0p at 3,018.0p, Fresnillo, down 111.0p at 2,102.0p, Ashtead Group, down 134.0p at 5,178.0p, Croda International, down 67.0p at 2,943.0p and Enten, down 134.0p. 17.6p at 807.0p.
Tuesday’s global economic diary sees the start of a two-day Federal Open Market Committee meeting, as well as home price data and a consumer confidence report from the Conference Board in the US.
Tuesday’s domestic UK corporate calendar includes a trading statement from miner Anglo American and third-quarter earnings from Asia-focused lender HSBC.
Contributed by Alliance News