Well that's all we have time for today, thanks for following along. Be sure to join us again tomorrow, when we'll be back for more of the latest markets news and all that's happening across the global economy.

Later this evening, at 7pm GMT, the US Federal Reserve will release the minutes of its latest FOMC meeting, so we will dive into that in the morning.

Until then, have a great evening folks!

As 2025 gets into full swing, it's important to consider the key themes likely to drive market movements throughout the year.

Major stock markets notched fresh record highs in 2024, with the S&P 500 (^GSPC) crossing the 6,000 points mark and the tech-focused Nasdaq (^IXIC) surpassing 20,000 points before easing back. The UK's FTSE 100 (^FTSE) also hit a new high in the early summer of 2024 and then retreated but has still been trading higher relative to previous years.

The highly anticipated "Santa rally" failed to materialise during the festive period, with markets instead ushering in the new year with a "Santa selloff".

Despite this downbeat start to the year, Deutsche Bank (DBK.DE) macro strategist Henry Allen said in a note published on Monday that there are a number of reasons why 2025 could be "another great year".

He pointed out that the S&P 500 has only posted a negative total return for two of the 16 years since 2008, while Europe's Stoxx 600 (^STOXX) and Japan's Nikkei 225 (^N225) has done so four times in that period.

Read more from Yahoo Finance UK

The latest data from the Department for Transport has shown that there were 73,334 devices installed as of 1 January, up from 53,677 a year earlier.

This marks an increase of 37% last year, compared with a 45% rise in 2023.

Rod Dennis, RAC senior policy officer, said:

The number of initial claims for unemployment support fell by 10,000 in the week to 4 January, to 201,000. Economists had expected a small rise, to 214,000.

It comes as US companies added fewer employees to their payrolls than expected last month.

Payrolls operator ADP has reported that US firms added 122,000 new workers in December, below the 140,000 which Wall Street economists predicted.

Services companies added 112,000 jobs — half in education and health services — while goods producers added 10,000 employees.

The figure marked a slight slowdown on November, when payrolls rose by 146,000.

British retailer Marks & Spencer's (MKS.L) food business enjoyed robust trading in the run-up to Christmas with sales up 6.8% in the four weeks to Dec. 28 and its market share rising to a record 4.8%, industry data showed on Wednesday.

Reuters has the details...

Market researcher NIQ said M&S was the UK's second-fastest growing bricks-and-mortar food retailer after discounter Lidl, whose sales rose by 8.5%.

Online supermarket Ocado (OCDO.L) remained the fastest growing of all grocers with sales up 13.9%.

Most of NIQ's data echoed a report from rival market researcher Kantar on Tuesday. However, Kantar does not include M&S in its UK grocers data set.

M&S typically outperforms rivals at Christmas as consumers trade up to its premium ranges.

In November, M&S, which also sells clothing and homewares, forecast strong Christmas trading after reporting a 17% rise in first-half profit, adding to evidence its latest turnaround plan is working. Its shares are up 31% over the last year.

The group is due to publish its Christmas trading update on Thursday, with analysts on average forecasting food sales growth of 7.8% for the 13 weeks to Dec. 28, with clothing & home sales growth of 0.7%.

NIQ said UK supermarket sales in the four-week period were up 3.2% year on year, versus growth of 3.7% in the previous month.

Gold prices (GC=F) edged higher on Wednesday morning, amid concerns around persistent inflation and the Fed's rate path.

The spot price rose 0.2% to $2,653.21 per ounce, while gold futures inched 0.1% higher to $2,668 per ounce.

While rising rates on bonds typically weighs on gold prices, as a non-yielding asset, investors look to the precious metal in times of uncertainty.

In addition, the People's Bank of China adding to its gold reserves last month indicates central bank demand for the precious metal is still strong.

ING head of commodities strategy Warren Patterson and commodities strategist Ewa Manthey said in a note on Wednesday that China had added to its gold reserves for a second month in December.

"Gold held by the People’s Bank of China rose to 73.29 million troy ounces in December, from 72.96 million in the previous month," they said. "The central bank resumed adding to its gold reserves in November after a six-month pause. The purchase by the central bank comes even with gold prices near record levels."

European stock indices are having a good week so far, with back-to-back gains for the German DAX, French CAC and Euro STOXX 50. The DAX is closing in on its all-time high from mid-December. In contrast, the UK’s FTSE 100 continues to be a trendless basket case.

David Morrison, senior market analyst at Trade Nation, said:

"Monday provided a prime example, particularly for the US dollar, which plunged following a Washington Post article saying that tariffs would be aimed at critical imports, only to reverse sharply after Trump insisted that tariffs would be broad-based.

"Perhaps more than even during his last term of office, traders will need to pay close attention to everything coming from the new President.

"And, just to prove a point, the dollar has soared while risk assets have tumbled on reports that Trump is ‘mulling a national emergency declaration to allow for new tariff program."

The pound has just touched a nine-month low, losing over 1% so far today, to $1.233, its lowest level since April 2024.

It comes as it continues to lose ground against the generally stronger dollar.

Matthew Ryan, head of market strategy at Ebury, said:

The fall has pushed up bond yields and boosted the dollar against most major currencies.

Michael Pfister of Commerzbank said: “Political risks aside, there is little reason to be bearish on the US dollar - even if current levels look a little overdone.”

Worker wellbeing is a growing concern for employers. From more flexibility to yoga retreats and walking meetings, leaders are trialling new and inventive ways to make people happier, healthier and ultimately, more productive. And now, some employers are turning to a holistic field of study — positive psychology.

Positive psychology is the study of happiness and flourishing. Developed in the late 1990s by Martin Seligman, a professor of psychology at the University of Pennsylvania, it has roots in humanistic psychology, an approach popularised by the likes of Abraham Maslow that focuses on an individual’s potential for growth. Believing that this framework lacked scientific evidence, Seligman set out to explore what really makes people happy.

“Positive psychology is the scientific study of what makes life worth living, focusing on strengths, virtues, and factors that help individuals and groups thrive,” says Dr Elena Touroni, a consultant psychologist and co-founder of The Chelsea Psychology Clinic.

Unlike traditional psychology, which often focuses on addressing mental health problems, this branch of psychology emphasises boosting well-being, resilience, and fulfilment. And by doing so, aims to promote positive positive emotions, meaningful relationships and a sense of purpose.

Although Seligman’s framework has been around for several decades, employers are only really just clocking on to the benefits it can bring to the workplace. In a 2019 study — in which employees at a company completed questionnaires — positive psychology concepts and individual positive traits such as optimism and personal strength boosted people’s performance.

Positive psychology has been found to reduce stress and anxiety, and boost resilience and self-growth — regardless of culture and contexts.

Read the full article here

Transport for London (TfL) has been criticised for adverts on tubes and at stations showing a controversial Islamic preacher holding a briefcase of burning dollars.

The posters for Wahed Invest, seen between September and November on Transport for London (TfL) services last year, featured US dollar and euro banknotes on fire.

The Advertising Standards Authority (ASA) received 75 complaints that the ads were offensive.

Wahed Invest said its intention was to "spark thought and awareness" and acknowledged the ASA's feedback on the use of international currency.

A spokesperson for Wahed Invest said: "We understand that visuals like those included in our campaign can elicit strong reactions.

"While our intention was to spark thought and awareness, we recognise the importance of ensuring that messaging resonates positively with the diverse audiences that may consume them.

"We acknowledge and appreciate the ASA's feedback on the use of international currency."

As we sail into the afternoon, here's a quick look at the main movers in equity markets.

• Oil major Shell (SHEL.L) was weaker as it said that results for the fourth quarter were significantly lower than the preceding three months, revealing $700m of well-write offs and a $1.3bn hit to cashflow.

• The company also cut its liquefied natural gas production guidance for the three months to 30 December to 6.8-7.2m metric tons, from earlier estimates of 6.9-7.5m tons.

• Flutter Entertainment (FLTR.L) was also under the cosh as the online betting firm downgraded its US guidance, citing unfavourable sports results.

• It noted that the 2024/2025 NFL season to date has been the most customer-friendly since the launch of online sports betting, with the highest rate of favourites winning in nearly 20 years.

• As a result, the company now expects 2024 US revenue to be around $370m lower than its previous guidance midpoint at approximately $5.78bn. It had previously guided to between $6.05bn and $6.25bn.

• After incremental one-off cost mitigation, adjusted EBITDA for the year is set to be around $205m lower than the previous guidance midpoint at approximately $505m, versus $670m to $750m.

TSB has this morning announced that, from Thursday 9 January, it is increasing selected mortgage rates by up to 0.2% and reducing other rates by 0.15%.

Ken James, director at Contractor Mortgage Services, said:

Meanwhile, Justin Moy, managing director at EHF Mortgages, said:

The pound dipped against the dollar in European trading, falling 0.8% to $1.2370, as concerns around economic data have seen bonds yields — the interest rates on debt — surge.

These costs on government borrowing in the UK, US and Europe have risen as data has stoked fears of stubborn inflation, which has led to concerns around how many times major central banks will be able to cut interest rates this year.

In the US, the Institute for Supply Management’s (ISM) monthly survey of the country's services sector, released on Tuesday, showed prices climbed to the highest level since last January. Meanwhile, US job vacancies rose by more than expected, hitting a six-month high.

Market focus will now turn to the US Federal Reserve's minutes from its last meeting of 2024, with investors looking for any indicators on the central bank's interest rate path this year.

Closely watched US non-farm payrolls data is also due out on Friday.

As expectations grow of higher for longer rate environment, the yield on the 10-year US Treasury has risen to 4.67%, which is its highest level in eight months.

The yield on 30-year UK government bonds, known as gilts, are hovering near their highest point since 1998, trading at 5.24%.

"In the UK, there is also particular concern brewing about stagflation taking hold, given that inflation has been creeping up and pay growth is still hot, while the economy has been stagnating," said Streeter. "There are concerns this may limit the interest rate reductions this year."

The pound was flat against the euro (GBPEUR=X), trading at €1.2058 on Wednesday morning.

London stocks rose in early trade on Wednesday but gains were muted after disappointing updates from Shell (SHEL.L) and Flutter Entertainment (FLTR.L), and amid worries about inflation.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said:

It comes as there are no major UK data points due on Wednesday, but in the US the ADP report for December is scheduled for release at 1:15pm while the FOMC's December minutes will be out at 7pm this evening.

German factory orders fell 5.4% month-on-month in November, according to statistics body Destatis on Wednesday.

The figures came in 1.7% lower than a year ago and suggests Europe's largest economy may slide into “a light winter recession” Carsten Brzeski, global head of macro at ING, said.

He added:

Credit cards aren't just about spending. They are also powerful tools that, when used wisely, can help you save money, manage debt and even earn rewards.

Whether you're looking to cut down on interest payments, earn cashback on everyday purchases, rack up air miles for your next holiday, or avoid fees while traveling abroad, there's a credit card tailored to your needs.

In this guide, we’ll break down the best options on the market for balance transfers, purchases, cashback, air miles and travel spending. We'll show you how to use these cards to your advantage, ensuring you get the most value while avoiding common mistakes.

If you're struggling to keep up with credit card payments, a balance transfer credit card can be a lifesaver. These cards allow you to transfer existing credit card debt onto a new card with a 0% interest rate for a set period, potentially saving you hundreds of pounds in interest.

However, there are some crucial rules to follow to make the most of these deals.

Find out what they are here

Nearly 40% of UK businesses are short-staffed at least once a week, due to worker illness and being unable to recruit enough staff, a new study has found.

according to new research by Indeed Flex, a third (34%) of businesses are struggling to fill vacancies as the labour market remains relatively tight with low levels of unemployment.

Almost two-thirds (65%) of employers say the national insurance hike will make it harder to increase wages and offer bonuses

Despite National Insurance (NI) rise and economic uncertainties, half of firms (49%) plan to increase recruitment this year, while 30% of businesses plan to ramp up their recruitment of temporary staff in 2025 to fill labour shortages.

Novo Constare, CEO and co-founder of Indeed Flex, said:

The Treasury will hold its biggest sale of five-year bonds in more than a decade as chancellor Rachel Reeves faces increasing pressure from rising borrowing costs.

The UK Debt Management Office (DMO) will auction £4.25bn of new debt later this morning a day after long-term government borrowing costs surged to the highest level since 1998.

Low levels of demand could trigger a further rise in yields in an effort to attract investors.

Five-year gilt yields have risen almost 35 basis points since the beginning of last month to around 4.44%, while 30-year yields are the highest in more than a quarter of a century.

The yield on the 30-year gilt reached 5.25% on Tuesday, surpassing a previous high in October 2023.

Economists have warned that the chancellor is on the brink of breaking her fiscal rules and being forced into another tax raid as bond yields rise.

Capital Economics said that the jump in borrowing costs had wiped out £8.9bn of the chancellor’s £9.9bn headroom to meet her fiscal rule of a balanced budget by 2029/30.

Rolls-Royce is set to expand its Goodwood factory and global headquarters in a bid to meet growing demand for bespoke models.

The luxury carmaker will invest more than £300m so it can build more highly-customised versions of its cars for its super-rich clientele, with the expansion securing its future in the UK, it said.

The company sold 5,712 cars in 2024, down from its record of 6,032 in 2023.

The brand said it "does not disclose prices" but it is understood its cheapest model, the Ghost saloon, sells from about £250,000 upwards. Its Cullinan sports utility vehicle and electric Spectre models are thought to start at around £340,000.

The carmaker has already been granted planning permission for the expansion of the Goodwood plant, which was built in 2003 and initially housed 300 workers. There are currently more than 2,500 people working on the site, with a further 7,500 in the UK supply chain.

The yuan dipped to 7.3316 against the US dollar in early trading, its weakest level since September 2023, and below the daily "fix" set by Beijing which dictates the levels where the yuan can trade.

The currency came under pressure after US president-elect Donald Trump denied a newspaper report that said his aides were exploring tariff plans that would only cover critical imports.

He had previously indicated he could impose tariffs of 60% on Chinese goods into the US, which would disrupt trade flows.

Wang Tao, chief China economist at UBS, said: