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London open: Stocks rise as investors welcome Trump’s Treasury Secretary appointment
London stocks rose in early trade on Monday as investors welcomed US President-elect Donald Trump’s decision to appoint billionaire fund manager Scott Bessent as Treasury Secretary.
At 0820 GMT, the FTSE 100 was up 0.4% at 8,296.04.
Patrick Munnelly at Tickmill Group said: “The general investor sentiment is satisfaction that Bessent is a well-known candidate rather than an unknown one. Bessent’s fiscally conservative rhetoric has pushed 10-year Treasury yields lower, but it is unclear if he will be able to reduce deficits while extending tax cuts that are about to expire.
“He has mentioned reducing spending and boosting economic growth in order to address the massive amount of US debt and bring the budget deficit down to 3% of GDP. Critics would point out that the United States has seen robust growth for a long time and that the deficit has only become bigger, and that the amount of discretionary spending that may be reduced is insignificant when compared to necessities like Medicare and defence. Though the tariff levels stated, like 60% on Chinese goods, were ‘maximalist’ stances that might be softened, Bessent has advocated for tariffs and suggested that they be ‘layered in gradually’.
“In an apparent attempt to counter President-elect Donald Trump’s prior experiment with devaluation as a means of reducing trade deficits, he has also expressed support for a strong dollar.”
In equity markets, shares in ITV surged following a report over the weekend that potential suitors have begun circling the broadcaster again after a prolonged period of share price weakness and renewed questions about its long-term strategic destiny.
According to Sky News, a number of possible bidders for parts or all of the company, whose biggest shows include Love Island, have in recent weeks held early-stage discussions about teaming up to pursue a potential transaction.
Anglo American gained after agreeing to sell the portfolio of steelmaking coal mines that it operates in Australia to Peabody Energy for $3.77bn in cash as part of its pivot to be a copper, premium iron ore and crop nutrients business.
Rentokil Initial advanced as it appointed Paul Edgecliffe-Johnson as chief financial officer with effect from 1 January 2025.
He will succeed Stuart Ingall-Tombs, who is retiring and will step down from the board at the end of the year after 17 years with the company, most recently as CFO for four years.
On the downside, B&Q and Screwfix owner Kingfisher tumbled as it nudged down the midpoint of its full-year profit guidance after a mixed third quarter, in which group sales fell 0.6%.
The company said 2024 adjusted pre-tax profit is expected to come in between £510m and £540m, compared with a previous forecast range of £510m to £550m.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Weir Group Plc | +2.39% | +52.00 | 2,228.00 |
| 2 |  |
Glencore Plc | +2.32% | +8.85 | 389.65 |
| 3 |  |
Rentokil Initial Plc | +2.24% | +9.10 | 415.80 |
| 4 |  |
Prudential Plc | +2.08% | +13.20 | 648.20 |
| 5 |  |
Antofagasta Plc | +1.95% | +32.50 | 1,697.00 |
| 6 |  |
Barclays | +1.73% | +4.45 | 261.65 |
| 7 |  |
Anglo American Plc | +1.67% | +39.50 | 2,398.50 |
| 8 |  |
Barratt Redrow Plc | +1.62% | +6.70 | 420.30 |
| 9 |  |
Rio Tinto Plc | +1.50% | +74.00 | 5,019.00 |
| 10 |  |
Standard Chartered Plc | +1.48% | +14.00 | 959.60 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Wheaton Precious Metals Corp. | -1.18% | -60.00 | 5,020.00 |
| 2 |  |
South32 Limited | -1.16% | -2.30 | 196.40 |
| 3 |  |
Tesco Plc | -1.10% | -3.90 | 349.50 |
| 4 |  |
Coca-cola Europacific Partners Plc | -0.95% | -60.00 | 6,240.00 |
| 5 |  |
Diploma Plc | -0.90% | -40.00 | 4,426.00 |
| 6 |  |
Marks And Spencer Group Plc | -0.71% | -2.70 | 376.30 |
| 7 |  |
Ck Infrastructure Holdings Limited | -0.64% | -3.50 | 545.00 |
| 8 |  |
Next Plc | -0.53% | -52.00 | 9,712.00 |
| 9 |  |
Auto Trader Group Plc | -0.53% | -4.40 | 825.60 |
| 10 |  |
National Grid Plc | -0.44% | -4.40 | 989.40 |
US close: Dow hits new high after upbeat economic data
Us stocks finished higher on Friday with the Dow Jones Industrial Average rising 1% to reach a new record closing high as incoming economic data lifted market sentiment.
With just two of its 30 constituents in the red, the Dow rose for the third straight session, gaining 426.16 points to settle at 44,296.51, surpassing a previous peak set on 11 November.
The S&P 500 meanwhile finished higher for the fifth consecutive day, rising 0.4% to 5,969.34, while the Nasdaq edged 0.2% higher to 19,003.65.
On the macro front, a preliminary reading of S&P Global’s November manufacturing PMI increased to 48.8 points in November, up from 48.5 in October, while the services PMI increased more than expected to 57 points, up from 55 a month earlier.
As a result, S&P’s composite PMI rose to 55.3, up from 54.1, indicating the strongest rate of growth since April 2022.
“The business mood has brightened in November, with confidence about the year ahead hitting a two-and-a-half year high,” said Chris Williamson at S&P Global Market Intelligence. “The prospect of lower interest rates and a more pro-business approach from the incoming administration has fueled greater optimism, in turn helping drive output and order book inflows higher in November.”
Elsewhere, the University of Michigan’s consumer sentiment index was downwardly revised to 71.8 in November from a preliminary reading of 73 but remained the highest reading seen in the last seven months.
Market movers
Apple finished marginally higher despite news that the UK’s CMA found that the company’s policies on mobile browsers hinder innovation, impacting UK businesses and millions of users. Its findings, part of an ongoing investigation into mobile browser markets, recommended prioritising further scrutiny of Apple’s and Alphabet subsidiary Google’s activities under forthcoming digital market regulations.
Shares in clothing retailer Gap surged after it raised full-year sales guidance on the back of a third-quarter earnings beat.
Reddit dropped sharply after a report form Bloomberg said shareholder Advance Magazine Publishers was looking to borrow money – as much as $1.2bn – using its equity stake in the social media company.
Software giant Intuit was out of favour after underwhelming with its first-quarter results, in which it gave disappointing guidance for the current quarter.
Sunday newspaper round-up: Nationwide, Close Brothers, Gold
Nationwide will announce a £2bn gain on its £2.9bn takeover of Virgin Money in its half-year results, this Wednesday, likely triggering a windfall for its customers. The building society will also turbo-charge investment in the combined business on top of its recently begun 500 person hiring spree. As well, millions of members are in line for more ‘fairer share’ perks. – Financial Mail on Sunday
There is speculation in the markets that Close Brothers may need to sell assets, perhaps including Winterflood Securities. Some even believe that the firm itself might become a takeover target. Car loans account for a fifth of total lending, or about £2bn. But what once was a booming sector has turned sour. Hence, the lender may now be forced to divest assets in order to meet compensation claims. – Financial Mail on Sunday
Endeavour Mining boss Ian Cockerill is a strong believer in gold as a “store of value”. He of course has an interest in inciting gold buying. Nonetheless, Cockerill points to how the yellow metal has fulfilled precisely that role over the past four or five millennia. – The Sunday Times
Recruiters have seen a flood of new job applications from workers angry over a flurry of return-to-office mandates at large companies. Two-thirds of recruiters have seen such applications increase, the results of a survey show. Three-quarters of recruiters meanwhile had observed candidates turning down rules that did not include hybrid working. – Guardian
