FTSE 100 up and US indices set for fresh highs as traders look to inflation data

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The FTSE 100 and European stocks headed higher on Monday as the dust settles on chancellor Rachel Reeves' first UK budget and the US election. Last week, both the Bank of England and Federal Reserve cut interest rates, contributing to the mood music.

Meanwhile, US traders are looking to fresh consumer price data, due out on Wednesday, for a read on the health of the economy.

  • The FTSE 100 (^FTSE) rose 0.7% by the closing bell in Europe. There were only 12 fallers in the index, including oil producers, which dipped alongside the black commodity's price. The move higher for the FTSE ends a four-day losing streak.

  • The index's top riser was speciality chemicals company Croda International (CRDA.L), which rose 4.9% following reports of strong third quarter sales growth.

  • The more domestically focused FTSE 250 (^FTMC) also rose around 1%.

  • The DAX (^GDAXI), meanwhile, was 1.3% higher in Germany. The CAC 40 (^FCHI) in Paris headed 1.2% higher.

  • The pan-European Stoxx 600 (^STOXX) was 1.2% in the green.

  • Over in the US, markets opened on Veterans Day at all-time highs thanks in large part to expectations for lower corporate taxes and deregulation from president-elect Donald Trump.

  • The Dow (^DJI) gained 0.8% by 4.30pm in London, as the S&P 500 (^GSPC) added 0.2%. The tech-heavy Nasdaq (^IXIC) also rose 0.1%.

  • Spirits are also buoyant after the Federal Reserve's latest interest-rate cut, though doubts about the rally's staying power are starting to emerge.

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  • Unstoppable greenback

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  • How US markets are faring in early trade

    It's expected to be fairly quiet in markets today, with the rest of the workforce off for Veterans Day. Here's what's happening after the opening bell on Wall Street:

  • Natwest buyback sparks rally

    Bank NatWest has bought back £1bn of its shares from the UK government, according to an announcement on Monday.

    The government and NatWest said that this sale meant that the Treasury's stake in the bank would fall to around 11.4% from 14.2%.

    The announcement also said that the government would "keep further disposal options under consideration when market conditions permit and it is value for money to do so".

    Following bailouts in the financial crisis, the government at one point had an 84% stake in the bank, which was previously known as the Royal Bank of Scotland.

    In a separate statement on Monday, Paul Thwaite, CEO of NatWest Group, said: "This transaction represents another important milestone on the path to full privatisation.

    "We believe it is a positive use of capital for the bank and for our shareholders and we are pleased with the sustained momentum in reducing HM Treasury's stake in NatWest Group throughout this year."

    Read more on Yahoo Finance UK

  • Stocks to watch this week: Tesla

    Yahoo Finance UK's Vicky McKeever writes:

    Electric carmaker Tesla (TSLA) has continued to rise since the US election last week, on the back of CEO Elon Musk's support for Trump in his campaign.

    The rally in Tesla shares saw the company's market valuation hit $1tn last week.

    Hedge funds which held short positions in Tesla had lost at least $5.2tn by Friday's close, according to Bloomberg.

    Musk had a been a major supporter of Trump's campaign, with Wall Street analysts believing that his policies could benefit Tesla.

    Wedbush analyst Dan Ives said in a note last week that Trump could roll back the current electric vehicle (EV) tax incentives in place and be "an overall negative for the EV industry." But given Tesla's potential competitive advantage in the EV space, this could be a "huge positive" for Tesla.

    "Tesla has the scale and scope that is unmatched in the EV industry, and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players, such as BYD (1211.HK) and Nio (9866.HK), from flooding the US market over the coming years," he said.

  • Bitcoin surges past $81k

    Here's the full story on bitcoin: Bitcoin surges to record high of $81k after Trump wins US election

    And how other crypto companies are looking today:

  • Could Trump presidency bump up bread and coffee prices?

    Head of income strategy at Investment Platform Saxo, Althea Spinozzi, said:

  • Is there a regional divide in energy prices? Panorama investigates

    The energy market is also in focus today after a new report by BBC Panorama has questioned the way energy meters work in northern England and Scotland.

    Energy UK, has confirmed there is a regional divide — because of the way meters send usage data back to suppliers.

    The difference is down to how customers in the north submit meter readings and rely on estimated bills, the report said. In Wales and the south of England meters use cellular technology in order to send data to energy providers. Elsewhere, meters use long-range radio signals, meaning they could be less accurate.

    A mass rollout of smart meters across the country has cost an estimated £13.5bn, the government said. There are now around 36m devices. Almost 10% — 3.5m — of these aren't working properly, according to recent government data.

  • Oil follows Asian stocks lower

    Yahoo Finance UK's Pedro Goncalves writes:

    Oil prices stabilised after experiencing their sharpest drop in nearly two weeks, as continued worries over China’s economic recovery weighed on the market.

    Brent crude futures gained 0.2%, trading at $74.02 per barrel, while US West Texas Intermediate (WTI) (CL=F) climbed 0.1% to $70.45 per barrel at the time of writing.

    Data at the weekend showed anaemic Chinese consumer inflation in October, while factory-gate prices fell again. That came after Beijing unveiled a debt-swap plan on Friday to bolster the economy, but stopped short of unleashing new stimulus, disappointing investors.

    Crude markets are assessing prospects for demand in 2025, with analysts also eyeing potential impacts of Trump’s White House return and Middle Eastern geopolitical tensions. With a global surplus anticipated next year, investors will be closely watching for influential projections on energy demand, beginning with OPEC’s outlook set to release Tuesday.

    In the physical oil market, timespreads have shown signs of softening. Brent’s prompt spread — a measure of the price difference between its two nearest contracts — remains in backwardation but has narrowed to 27 cents from 44 cents a month ago.

    Following the OPEC report, the US Energy Information Administration will present its short-term forecast on Wednesday, followed by the International Energy Agency’s perspective on Thursday. In its last update, OPEC lowered its demand projections, adding further caution to the market’s outlook.

  • UN climate envoy makes appeal to consumers

    UN climate envoy, Simon Stiell, made an appeal to consumers this morning, posing the question: Do you want your bills to go up even more?

    He argues that, if the answer is no, progress at the conference towards something called Article 6 is paramount.

    Article 6 establishes a framework for countries to cooperate in reducing emissions and achieving their climate goals.

  • COP29 kicks off

    One of the most important climate conferences kicks off in earnest today, so expect a slew of energy policy tidbits from COP29.

    One of the outstanding questions in policy is now whether president-elect Trump will, once again, remove the US from the 2015 Paris Agreement.

    In his previous term as president he took the US out of it, but Joe Biden promptly reinstated the agreement when he took office.

  • Average UK house price set to rise by £10,000 in 2025

    A new forecast has suggested that the UK's average house price is set to rise by 3% in 2025, followed by a further uptick of 3.5% in 2026 and 2.7% in 2027. Next year, this would bring the average house price to £300,000, or around a £10,000 increase on current levels.

    Estate agency Hamptons's near-term forecasts have remained unchanged, but the longer-term view has been downgraded due to high interest rates and the tax landscape.

    Regionally, London is expected to be the winner in 2025, outperforming other regions for the first time in around a decade. Hamptons forecast a 4% annual house price growth in London in 2025.

    Meanwhile rental prices are expected to outpace the rate of inflation, with increases of 4.5% in 2025 and 4% in 2026 and 2027.

    Between now and the end of 2027, Hamptons rents to rise by 17.0% across Great Britain, outpacing house price growth of 12.5%.

    Read more on Yahoo Finance UK

  • Bitcoin hits all-time highs

    Bitcoin (BTC-USD) headed to an all time high above $81,000 over the weekend, spurred on by optimism that president-elect Donald Trump will be favourable to the industry when he takes his seat in the White House in January.

    Bullish projections have suggested the digital asset could be headed for a target of $100k before the end of the year.

    "Traders are very much hoping that the bitcoin price will reach its goal of 100K this week," said Naeem Aslam, chief investment officer at Zaye Capital Markets.

    "The fact about bitcoin is that it doesn’t really record wild moves like before, and by that, what we mean is that if the price reaches the 100K price level this week, it would make some traders nervous as they would think that the price has gone too far and too quickly, which means that we are going to see a correction shortly. However, the crypto community also believes that the game has totally changed for Bitcoin with President Trump taking the office back. For them, now bitcoin has the real shot of becoming the ultimate digital gold."

    "In addition, the days may not be that far when bitcoin may begin to sit on the balance sheet of the government as a part of a reserve digital currency."

  • Asian stocks fall after stimulus misses expectations

    Asian markets declined on Monday, pulling lower after the government approved a 6 trillion yuan plan to kickstart the economy on Friday.

    The Hang Seng (^HSI) in Hong Kong closed the session 1.6% lower, while the Nikkei (^N225) in Japan was almost flat.

    The post-election Rally, which brought the Dow and S&P close to fresh highs in the US, has failed to spur on stocks in Asia.

  • US stock futures

    Even though its a holiday in the US, markets typically remain open on Veterans Day. Here's what stock futures are doing:

  • How stocks fared in the US on Friday

  • Friday trade in the US

    From our US team:

    US stocks capped their best week of the year on Friday after the S&P 500 (^GSPC) briefly hit 6,000 in a market rally spurred by Donald Trump's White House victory followed by the Federal Reserve's latest rate cut.

    The broad-based index rose 0.4% to a new record, while the tech-heavy Nasdaq Composite (^IXIC) closed near the flatline. The Dow Jones Industrial Average (^DJI) gained 0.6% after crossing 44,000 for the first time during the session.

    Stocks edged higher to end a stellar week of gains driven by optimism that President-elect Donald Trump's policies will boost the economy. The initial "Trump trade" rush was volatile on Friday as the US dollar (DX=F) and Treasury yields gave up a good chunk of their post-election gains.

    Even so, Wall Street major gauges notched fresh milestones during the session after racking up more records on Thursday as the Federal Reserve delivered the expected interest rate cut.

  • Good morning!

    Hello from London. Lucy Harley-McKeown here, gearing up for another day of markets news.

    The calendar is fairly sparse this morning, with a holiday in the US for Veterans Day. Tomorrow earnings season kicks off again in earnest with quarterly reports from 3i, AstraZeneca, Bayer and Shopify, among others.

    Let's get to it.

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