Stocks in Europe opened in the green Monday morning, as investors look ahead to US inflation data later this week.
The FTSE 100 index opened up 37.13 points, 0.5%, at 8,205.23. The FTSE 250 was up 62.88 points, 0.3%, at 20,688.06, and the AIM All-Share was up 2.53 points, 0.3%, at 768.77.
The Cboe UK 100 was up 0.5% at 820.11, the Cboe UK 250 was up 0.5% at 18,135.94, and the Cboe Small Companies was down 0.1% at 16,783.96.
In European equities on Monday, the CAC 40 in Paris was up 0.1%, while the DAX 40 in Frankfurt was up 0.3%.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.1%, and both the S&P 500 and the Nasdaq Composite up 0.5%.
‘It is a calmer start to the week in financial markets, where equities are stabilising and volatility is falling,’ said analysts at ING.
This calm will be welcomed, as it was only a week ago that markets were shook by a global sell-off. This was sparked by a slew of poor economic data from the US, which triggered recession fears.
On Tuesday, there is a US producer price inflation reading for investors to digest, followed by a consumer price inflation reading on Wednesday.
ING analysts said that ‘consensus expects a combination of data that will allow the Federal Reserve to cut in September.’
In politics, the US election is heating up, with eyes on polls.
Kamala Harris now leads Donald Trump in three crucial battleground states, according to new polls published Saturday, apparently eroding the advantage the former president has enjoyed there over the past year.
The polls of likely voters by the New York Times and Siena College showed Democratic presidential candidate Harris leading her Republican rival Trump by an identical 50% to 46% margin in Michigan, Pennsylvania and Wisconsin.
Under the US electoral college voting system, those three populous Midwestern states are considered key to victory for either party.
The pound was quoted at $1.2769 early on Monday in London, virtually unchanged compared to $1.2770 at the equities close on Friday. The euro stood at $1.0921, lower against $1.0925. Against the yen, the dollar was trading at JP¥147.28, higher compared to JP¥146.56.
In the FTSE 100, BT Group took the lead, jumping 6.3%.
Bharti Global said it has reached an agreement to buy a large stake in BT from Altice UK, sending shares in the London-based telecommunications operator upwards.
The Delhi, India-based telecommunications company said it will buy a 24.5% stake in BT from Altice UK, a subsidiary of Altice Europe NV, which is lead by Israeli billionaire Patrick Drahi.
Bharti said it has entered into a binding agreement with Altice UK to acquire a 9.99% stake of BT’s issued capital imminently, with the balance 14.51% of BT’s share capital to be purchased following receipt of regulatory clearances.
Sunil Bharti Mittal, chair of Bharti Enterprises, said: ‘This investment demonstrates the confidence we have in BT and in the UK. BT has a strong portfolio of market leading brands, high-quality assets and an experienced management team with a compelling strategy mandated by the BT Board to deliver value over the long term, which we fully support.’
In response, BT CEO Allison Kirkby said: ‘We welcome investors who recognise the long-term value of our business, and this scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy.’
There was just a handful of companies in the red on Monday morning, with JD Sports falling by 1.8%.
Deutsche Bank cut its broker rating for the Manchester, England-based sportswear retailer to ’sell’ from ’hold’.
In the FTSE 250, Marshalls shed 2.3%.
The landscaping products maker reported that revenue in the first half of 2024 fell 13% to £306.7 million from £354.1 million a year earlier.
However, pretax profit jumped 22% to £21.5 million from £16.7 million. Net operating costs in the year fell to £277.8 million from £327.3 million.
Marshalls left its dividend unchanged at 2.6p.
Looking ahead, the company said that it remains ‘cautiously optimistic of a modest recovery in its end markets during the second half of the year predicated on a progressive improvement in the macro-economic environment.’
Elsewhere, on London’s AIM, Global Petroleum surged 51%.
The Africa and Mediterranean-focused oil and gas company said it has entered into early commercial discussions with a potential operating partner for a farm-in agreement for its licence PEL94. It said this is a result of recent activity in the Walvis Basin, offshore Namibia.
Global said a farm-in ‘could be transformational for the business’, if successful.
The company added: ‘Global is hopeful in reaching a mutually beneficial agreement with the Partner in due course following further due diligence and negotiations.’
In China, the Shanghai Composite was down 0.1%, while the Hang Seng index in Hong Kong was up 0.1%. The S&P/ASX 200 in Sydney closed up 0.5%
Japanese financial markets are closed on Monday for Mountain Day.
Brent oil was quoted at $80.05 a barrel early in London on Monday, up from $79.54 late Friday. Gold was quoted at $2,440.10 an ounce, higher against $2,429.01.
The economic calendar for Monday is looking pretty quiet, with the US monthly budget statement and consumer inflation expectations out in the afternoon.
It will heat up on Tuesday, though, with UK unemployment data, as well as eurozone unemployment and GDP readings.
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