Stock Markets in London Surge Amidst Hopes of Interest Rate Cuts
Stock prices in London received a boost at midday on Monday, as investors turned their attention to a key UK inflation reading later in the week, which is anticipated to indicate cooling prices. As hopes for interest rate cuts climbed, gold hit a record high above USD2,450 an ounce earlier that day.
FTSE 100 & FTSE 250 Performance
Gold miner Fresnillo emerged as the top performer of the morning on the FTSE 100 index, fueled by expectations of interest rate cuts. Meanwhile, Kainos saw a significant jump in the FTSE 250 index following an increase in its dividend and impressive results for the period.
Market Indices and European Equities
The FTSE 100 index was up 0.3%, with the FTSE 250 also seeing a rise of 0.7%. The AIM All-Share index was up by 2.0%. In the European equities market, the CAC 40 in Paris was up by 0.4%, while the DAX 40 in Frankfurt saw a 0.3% increase.
Cautious Optimism & Economic Outlook
Global equity markets celebrated the softer-than-expected US CPI data from the previous week, fueling expectations for rate cuts by major central banks. The softer inflation in the US may prompt the Federal Reserve to reduce rates, with the European Central Bank and Bank of England potentially following suit. This positive sentiment also contributed to gold reaching a new high early in the week.
Economic Indicators and Corporate News
Investors are particularly interested in Wednesday’s inflation reading for the UK, with expectations for consumer price inflation to moderate significantly. In the corporate world, AstraZeneca announced plans for a manufacturing facility in Singapore. On the FTSE 250, Kainos reported strong financial results, including a rise in profit and dividends.
Keywords Studios Receives Private Equity Bid Interest
In a notable development on London’s AIM, Keywords Studios experienced a significant surge in its stock price. The company disclosed receiving private equity bid interest, with a cash bid offer representing a substantial premium to its previous closing price. The proposed bid values the company at around GBP2.03 billion.
Outlook for New York Stocks and Oil Prices
Stocks in New York were expected to open higher, with the Dow Jones Industrial Average, S&P 500 index, and Nasdaq Composite all showing positive signs. Additionally, Brent oil prices in London were slightly up at USD83.82 per barrel.
Overall, the market sentiment in London and globally reflects a cautious optimism driven by expectations of interest rate cuts and positive economic indicators, with investors closely monitoring key events and corporate developments.
By Sophie Rose, Alliance News senior reporter
