Friday, November 22, 2024

FTSE 100 inches higher as global markets cautious ahead of US election

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The FTSE 100 finished higher after a largely cautious trading session, with uncertainty over the US election casting a shadow on global trading.

Many were also looking firmly towards major interest decisions in the US and UK later in the week as the equity markets remained fairly subdued.

In London, strong sessions for NatWest and Burberry helped support some positivity across the main markets.

The FTSE 100 finished 7.09 points, or 0.09%, higher to end the day at 8,184.24.

Elsewhere in Europe, the other main markets were slightly lower as major multinationals were impacted by stronger currency rates against the weak dollar.

The Cac 40 ended 0.5% lower for the day and the Dax index was down 0.47%.

In the US, the main equity markets were weaker as investors sought security in Treasury bonds, helping bring down the yield on 10-year bonds.

Axel Rudolph, senior technical analyst at IG, said: “Following a positive session in Asia ahead of China’s National People’s Congress meeting that may provide further details of new stimulus measures, European and US stocks were mixed as investors were focused on Tuesday’s US presidential election.

“US factory orders fell for a second month but the market seemed more interested in Thursday’s US Fed rate decision at which another 0.25 percentage point rate cut is firmly priced in.”

Meanwhile, sterling lifted as worries about the US election weighed on the dollar.

The pound was up 0.12% at 1.293 US dollars and down 0.33% at 1.188 euros.

In company news, mining giant Anglo American slipped marginally after it struck a deal to sell its stake in an Australian coal joint venture for 1.6 billion Australian dollars (£830 million).

Anglo American told shareholders on Monday it will sell its 33.3% stake in Jellinbah Group to Zashvin, which already owns a third of the business alongside Japanese business Marubeni.

Shares in Anglo American moved 0.2% lower to 2,390.5p.

Burberry was firmly higher after its value was stoked by reports that Italian luxury firm Moncler is considering a takeover bid.

Fashion title Miss Tweed reported that Moncler, which also owns Stone Island, is looking for a potential deal, after Frasers Group failed in its efforts to buy Burberry.

Shares in the London fashion house were up 4.8% to 851p.

NatWest saw its shares rise to their strongest level for a decade as another broker upgrade helped it keep up its recent rally.

The banking giant was up 2.6% to 385.1p amid a boost from a share price target upgrade by Peel Hunt.

Elsewhere, the price of oil increased following Opec+’s decision to postpone planned output increases by a month.

A barrel of Brent crude oil was up by 1.33% to 74.41 dollars (£57.52) as markets were closing in London.

The biggest risers on the FTSE 100 were Natwest Group, up 9.8p to 385.1p, DS Smith, up 13.5p to 552.5p, Frasers, up 13p to 780p, Antofagasta, up 27p to 1,790p, and BT, up 1.9p to 142.15p.

The biggest fallers on the FTSE 100 were Hiscox, down 33p to 1,061p, Melrose Industries, down 13.3p to 474.2p, Weir Group, down 44p to 2,056p, Endeavour Mining, down 35p to 1,709p, and Centrica, down 2.3p to 115.7p.

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