London Market Update: Stocks Rise Amid US Treasury Pick “Antidote”

Stocks in London started the week on a positive note, thanks to a U.S. Treasury chief pick that eased market concerns. There was also a lot of early corporate news involving mergers and acquisitions.

Among the big names in the FTSE 100, JD Sports saw a 3.5% increase, rebounding from a recent dip, while Kingfisher, the owner of B&Q, dropped by 11% after revising its profit outlook.

The FTSE 100 index rose by 0.3%, adding 26.90 points to reach 8,288.98. The FTSE 250 and AIM All-Share also saw gains of 0.4% and 0.4%, respectively.

Across the Channel, the CAC 40 in Paris was up by 0.5%, and the DAX 40 in Frankfurt rose by 0.6%.

Analysts are paying close attention to President-elect Trump’s choice of Scott Bessent as Treasury Secretary. Bessent, a hedge fund manager, is seen as a calming figure for Wall Street, which could lead to a year-end rally—a historically strong period for stocks.

Meanwhile, in other global markets, the Shanghai Composite in China closed 0.1% down, the Hang Seng Index in Hong Kong lost 0.4%, and the Nikkei 225 in Tokyo gained 1.3%.

In terms of currencies, the pound was at USD1.2559 on Monday morning, up from USD1.2511 at the close of London trading on Friday, while the euro rose to USD1.0454 from USD1.0394.

Looking ahead, keep an eye on US data as the week progresses. The Federal Reserve meeting minutes are due on Tuesday, followed by personal consumption expenditures on Wednesday and initial jobless claims. US markets will be closed on Thursday for Thanksgiving.

In the energy sector, Brent oil was trading at USD74.42 a barrel on Monday, and gold was at USD2,670.66 an ounce.

In London, Anglo American announced a deal to sell its remaining steelmaking coal portfolio to Peabody Energy for USD3.78 billion. This move aligns with Anglo American’s strategy to focus on other core businesses, including copper, premium iron ore, and crop nutrients. Chief Executive Duncan Wanblad sees this sale as a significant step towards reshaping the company’s portfolio.

Overall, the markets seem to be responding positively to recent developments, with cautious optimism prevailing among investors. Keep an eye on key economic indicators and corporate news for further insights into market trends.