The FTSE 100 and European indexes rose on Monday morning even as Storm Isha battered parts of the continent. (Vuk Valcic)
The FTSE 100 and European indexes rose on Monday morning even as Storm Isha battered parts of the continent.
Strong winds and heavy rain have caused power outages and disrupted travel across the UK and parts of Europe, with flights currently suspended at several airports.
The FTSE 100 (^FTSE) was up 0.4% in early trade, the DAX (^GDAXI) was up 0.7% and the CAC in Paris (^FCHI) was up 0.9% in early trade. The pan-European stock index STOXX 600 (^STOXX) also rose by 0.6%.
Gambling group Entain (ENT.L) and grocer Ocado (OCDO.L) were among the top gainers on the FTSE in the first hour of trading, rising more than 4% each.
Strong winds and heavy rain have caused power outages and disrupted travel across the UK and parts of Europe, with flights currently suspended at several airports.
As the market boomed, the Financial Times reported that hedge funds made profits worth $67 billion in 2023 from bold bets on the stock market.
Citing research from LCH Investments, the paper said the 20 best-performing hedge funds since their founding, which manage 19% of assets, earned about a third of annual profits in dollar terms last year. It was reported.
Top profit-taking stocks in 2023 included Sir Christopher Horne’s TCI, Ken Griffin’s Citadel and Andreas Halvorsen’s Viking.
read more: What UK retail sales slump reveals about recession and interest rates
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UK interest rates will fall to 4% this year, experts say
Click here for Yahoo Finance UK Pedro Gonsalves Trends in potential interest rates in 2024:
A fall in inflation will force the Bank of England (BoE) to cut interest rates this year, to reach 4%, according to research by leading forecasters.
EY Item Club said it still expects inflation to fall to the central bank’s target of 2% by May, despite the unexpected rise in price growth to 4% in December.
This will allow Threadneedle Street to cut interest rates to 4% from a 15-year high of 5.25% by the end of the year, the advisory firm said.
read more: UK interest rates will fall to 4% this year, experts say
PMI forecast
Matthew Ryan, head of market strategy at Everly, said of the PMIs to be released on Wednesday:
A persistent concern for investors remains the rather fragile state of the UK economy. Friday’s retail sales report was particularly weak, with sales posting the biggest monthly drop since 2021, when pandemic restrictions were still in place. It is still a coin toss whether a technical recession will be confirmed in the fourth quarter when official GDP statistics are released in mid-February.
If last week’s data is to be believed, a mild recession seems likely. This week’s PMI data is expected to be even brighter, remaining well above the expansionary 50 level and supporting the pound.
Coming this week
Tuesday: Japanese interest rate determination
Wednesday: Eurozone PMI, UK PMI, Bank of Canada interest rate decision
Thursday: January German IFO Business Conditions Index, ECB Interest Rate Decision, US GDP
Money: US PCE Price Index
Asia’s complex situation
It appears that there was intense trade between China and Japan on this day. The Nikkei Stock Average (^N225) was the day’s winner, rising 1.6% to a 32-year high. The Nikkei ended 5.6% higher, supported by stocks such as Yamaha Motor Corp., which entered the electric vehicle market with the acquisition of Torqeedo from Germany’s Deutz.
On the other hand, the Hang Seng Index (^HSI) hit a 15-month low due to selling concentrated on real estate stocks in general. The People’s Bank of China announced that the prime rates for one-year and five-year loans will remain unchanged at 3.45% and 4.2%, respectively. The index stood at 2.4% as of the end of the day.
The SSE Composite Index (000001.SS) followed suit, falling 2.7% by the closing bell.
Good morning from London
Hello from London, I’m Lucy Hurley McCune. This week is set to start with even more exciting market action. London markets are starting the day on a positive note despite dramatic overnight swings in Asia. Let’s begin.
