- FTSE 100 down 2 points
- Trump secures election victory
- Wall Street rallies
3.58pm: FTSE 100 struggles for direction late on
London’s blue chips headed into late trading bouncing between positive and negative territory.
The FTSE 100 had surged over 100 points higher in the immediate aftermath of Donald Trump’s election victory in the US, but receded back to 8,169 late on, marking a 2 point drop.
Intercontinental Hotels Group PLC (LSE:IHG) led risers come the afternoon with a 5.4% gain, followed by Ashtead Group PLC (LSE:AHT), which was highlighted as a key beneficiary of Trump’s win.
Machinery and tool rental firm Ashtead “is a perfect match for Trump’s vision of blue-collar workers earning a steady salary in America,” AJ Bell analyst Dan Coatsworth said.
Defence stocks were also on the front foot following Trump’s victory, with Rolls-Royce Holdings PLC (LSE:RR.) and BAE Systems PLC (LSE:BA.) up 3.1% and 4.2% respectively.
“Trump increased defence spending in his first term as president and will likely do the same again this time round,” Coastworth added.
The dollar also remained inflated at £0.7770 and up 1.33% against the pound on anticipation of inflationary policies under Trump, while Bitcoin held a 7.2% gain.
Trump has previously alluded to a more supportive environment for the cryptocurrency space in the US… Read more
Back in London, Persimmon PLC (LSE:PSN) led fallers after warning on growing costs, with its 8.2% drop also dragging the likes of Taylor Wimpey PLC (LSE:TW.) and Barratt Redrow PLC (LSE:BTRW) lower.
Miners were also among the day’s losers on the FTSE 100 as commodities came under pressure after Trump beat Kamala Harris to the White House.
3.37pm: Goldman Sachs winds down UK growth forecast on Trump win
Goldman Sachs has cut its forecast for UK economic growth next year on the prospect of new tariffs on imports under Donald Trump after his election victory.
Analysts predicted the UK economy would expand by 1.4% in 2025, against previous expectations for 1.6%.
Lower growth would reflect a hit from proposed sweeping tariffs under Trump, Goldman said.
Eurozone gross domestic product was seen growing by 0.8% next year, compared to 1.1% previously, in the meantime.
“Taken together, our analysis points to a 0.5% hit to real GDP in the eurozone, ranging from 0.6% in Germany to 0.3% in Italy, with a moderate 0.4% hit to the UK.
“We expect the bulk of the growth hit to materialise between [the first quarter of] 2025 and [the fourth quarter of] 2025.”
3.17pm: Persimmon drags housebuilders lower
The FTSE 100 gave up a 100-point gain into Wednesday afternoon to sit 19 points lower at 8,152 as housebuilders and miners were among those to weigh.
Persimmon PLC (LSE:PSN) led the drop with an 8.9% decline after flagging up growing costs in a statement earlier on in the day.
“The company is warning of a potential impact from the Budget on this front too,” AJ Bell analyst Russ Mould noted.
“The changes to stamp duty are broadly unhelpful to the business. If property prices soften then the company and housebuilding industry are back to facing the unhelpful cocktail which saw their shares come under significant pressure in recent years.”
Rivals Taylor Wimpey PLC (LSE:TW.) and Barratt Redrow PLC (LSE:BTRW) also sat among the day’s losers following the update.
Miners came under pressure in the meantime, as lower commodity prices on fears over inflationary policies from US president-elect Donald Trump saw the likes of Antofagasta PLC (LSE:ANTO) drop 6.3%
Medical firm Smith & Nephew PLC (LSE:SN) slumped over 5.3% on a downgrade from Berenberg analysts, while BT Group PLC (LSE:BT.A) also fell.
2.56pm: Wall Street rallies at open
Wall Street rallied as trading got underway following confirmation of Donald Trump’s win in the US presidential election.
The Dow Jones added 1,274 points, or just over 3% as trading got underway, while the S&P 500 and Nasdaq gained 2.1% each respectively.
News of Trump’s victory sent shares in the likes of banks and construction firms higher as investors looked to the former president’s tax-cutting and building-boosting plans.
Goldman Sachs gained 10.4% as the market opened, while Caterpillar Inc (NYSE:CAT, ETR:CAT1) (Caterpillar Inc (NYSE:CAT, ETR:CAT1), Caterpillar Inc (NYSE:CAT, ETR:CAT1)) and JPMorgan Chase & Co (NYSE:JPM, ETR:CMC) (JPMorgan Chase & Co (NYSE:JPM, ETR:CMC), JPMorgan Chase & Co (NYSE:JPM, ETR:CMC)) were among a score of companies to enjoy gains.
Tesla Inc (NASDAQ:TSLA) (Tesla Inc (NASDAQ:TSLA)) shares soared 14.3% in the meantime, on speculation Elon Musk’s vocal support during Trump’s campaign would see his electric vehicle firm reap the rewards.
“Markets are faced with the prospect of an unrestricted period of leadership that many had pencilled in as the best-case scenario for equities,” Scope Markets analyst Joshua Mahony said.
“In particular, the focus on traditional industries such as US manufacturing and energy provide the basis for a redistribution of US economic strength after a period where tech has been the only show in town.”
Renewable energy firms Orsted and Vestas emerged as losers on the back of Trump’s win though, falling 14.2% and 13.1% in New York early on, given the president-elect’s previous opposition against offshore wind.
1.59pm: Gold tumbles as traders mull Trump win
Gold tumbled on Wednesday in the wake of Donald Trump’s election victory as traders mulled the prospect of inflationary pressure and fewer rate cuts under his presidency.
The yellow metal shed 2.97% over the course of the day to fall to US$2,664, returning to levels last seen in mid-October.
This coincided with a surge in US treasury yields and the dollar against rival currencies.
Following Trump’s victory, “investors began to factor in the possible effects of [his] election promises to cut taxes and red tape, and increase spending,” Trade Nation analyst David Morrison said.
“While both candidates had programmes which, if enacted in full, would add trillions to the national debt over the next four years, Trump’s were reckoned to be more egregious than Harris’s.
“This suggests that inflation could come roaring back, forcing the US Federal Reserve to pull back from cutting rates.”
Fresnillo PLC (LSE:FRES) emerged as one of the day’s biggest FTSE 100 losers following the drop with a 6.1% decline.
A hit to commodity prices elsewhere on fears of higher inflation under Trump also saw the likes of Antofagasta PLC (LSE:ANTO), Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF), Glencore PLC (LSE:GLEN) and Anglo American PLC (LSE:AAL) weigh on the index.
1.45pm: Asda axes jobs and calls workers back to office under turnaround plan
Asda has reportedly moved to axe rolls and demand workers return to the office three days a week under a turnaround plan following its takeover by TDR Capital.
According to The Telegraph, Asda chair Stuart Rose told staff in an email on Tuesday that a number of head office roles would be cut to “remove duplication and simplify structures”.
Changes were also unveiled to Asda’s attendance policy at its offices in Leicester and Leeds.
“Change is never easy and is unsettling, but the executive team believe it is necessary to enter 2025 in a stronger position, fully focused on serving our customers, delivering our ambitions and driving long-term growth,” he said.
It comes just weeks after Rose took the helm on an interim basis after Zuber Issa had sold his stake in Asda and brother Mohsin Issa stepped down from a leadership role.
The supermarket has been shedding market share recently, with figures from Kantar showing this down at 12.6% in the 12 weeks to September, against 13.8% previously.
12.52pm: Euro heads for worst day versus dollar in eight years
Wednesday’s volatility following Donald Trump’s election win has set the euro on course to suffer its steepest decline in eight years.
A 2.16% decline against the dollar took the euro to US$1.0695 on Wednesday, as Trump’s victory sparked fears over the weight of US tariffs on the European economy.
“Investors are positioning themselves based on expectations of potential trade disruptions,” Chris Metcalfe, chief investment officer at Kingswood Group’s IBOSS, said.
“The European Union faces a considerable challenge in managing trade tariffs effectively. A Trump presidency may embolden populist parties across Europe, potentially leading to a rise in protectionist policies.
“This would intensify trade wars and create further uncertainty in the global economic landscape.”
The euro also lost 0.75% to the pound throughout the day, falling to £0.8317.
12.37pm: Wall Street to rally
Wall Street was on course to rally after Donald Trump was confirmed to have beaten Kamala Harris in the race to the White House on Wednesday morning.
Futures had the Dow Jones up 2.9%, or 1,244 points, at 43,625 ahead of Wednesday’s opening bell.
The S&P 500 looked on course to surge by 2.1% in the meantime, as the Nasdaq was seen 1.4% higher.
Bonds faced a hefty sell-off ahead of New York’s open on Wednesday morning though, with the yield on 10-year US treasuries surging 20 basis points to 4.47%.
The dollar also rallied by 1.6% against foreign currencies, while Bitcoin jumped 7.5%.
“It is also worth keeping an eye on rising bond yields, which could negatively impact sentiment,” Razaqzada continued.
“[Trump’s presidency] could boost inflationary pressures and result in a slower pace of rate cuts from the Fed relative to other central banks.
“It could even prevent the Fed from cutting rates significantly in 2025 should the disinflation process stops and reverses. This is why the US dollar has rallied.”
11.49am: Rolls-Royce, BAE higher as defence boost seen under Trump
Donald Trump’s win over Kamala Harris in the US election has sent ripples across the London market.
Rolls-Royce Holdings PLC (LSE:RR.) and BAE Systems PLC (LSE:BA.), which are among the most exposed to the US, jumped by 4.2% and 4.5% respectively.
This came as fears over sweeping import tariffs under Trump appeared to be offset by the former president’s likely commitment to boosting defence spending.
Ashtead Group PLC (LSE:AHT) led risers on the FTSE 100 in the meantime with a 5.9% gain, on “the prospect of more building work created by Trump’s desire to drive the US economy,” according to AJ Bell analyst Russ Mould.
Also gaining on exposure to the US economy was Intercontinental Hotels Group PLC (LSE:IHG) and Barclays PLC (LSE:BARC).
“Trump has campaigned on a mandate that includes further tax cuts for US companies, and less government regulation,” Henderson International Income Trust portfolio manager Ben Lofthouse pointed out.
11.25am: Ferrexpo among winners as Trump named next US president
Ferrexpo PLC (LSE:FXPO) shares spiked in the wake of Donald Trump’s US presidential election victory as traders laid down bets on an end to the war in Ukraine.
Shares in the Ukraine-based miner rallied 22.2% to 76p on Wednesday as confirmation came that Trump had beaten Kamala Harris in the race to the White House.
Finalto analyst Neil Wilson noted Ferrexpo was a “Ukraine peace play,” after Trump had previously vowed to end the Russia-Ukraine conflict in “one day” upon taking power.
Ferrexpo has continued to operate iron ore mines and pelletiser lines despite Russia’s invasion of Ukraine, which began in early 2022.
Ukrainian president Volodymyr Zelenskyy was among the first foreign leaders to congratulate Trump on his victory.
Zelenskyy said he looked forward to a “strong United States of America under President Trump’s decisive leadership.”
He added Ukraine relied “on continued strong bipartisan support [...] in the United States,” with Trump also previously committing to cut off aid for its fight against Russia.
11.12am: Tesla surges as Trump victory spells good news for key backer Musk
Tesla Inc (NASDAQ:TSLA) gained over 14% in pre-market trading on confirmation of Donald Trump’s win in the US presidential election.
Elon Musk had been a vocal supporter of Trump throughout the former president’s election campaign, prompting speculation his electric vehicle firm would now reap the rewards.
“Musk’s heavy contributions to Trump’s campaign could mean he has bought influence on shaping future regulations for autonomous vehicles operating on US streets,” Saxo chief macro strategist Saxo’s John Hardy commented.
“Elon Musk’s status as Trump’s ally from the business community hasn’t gone unnoticed by investors,” AJ Bell’s Russ Mould added.
The 14% jump in Tesla shares equates to an additional US$110 billion of the electric vehicle giant’s valuation... Read more
10.40am: Donald Trump confirmed as next US president
Donald Trump’s victory in the US presidential election has been confirmed.
The former president has won 277 electoral votes, taking him past the 270 needed to secure victory, according to Associated Press data.
10.24am: Barclays leads banks up as Trump win a 'goldilocks scenario’
London-listed banks are among those to have enjoyed a positive reaction to Donald Trump’s all-but-confirmed victory in the US presidential election.
Barclays PLC (LSE:BARC) climbed 4.1% on Wednesday, while Lloyds Banking Group PLC (LSE:LLOY) ticked up 1.2% and NatWest Group PLC (LSE:NWG) gained 1.1%.
Scope Markets analyst Joshua Mahony noted Trump’s likely win had brought a “goldilocks scenario” for banks.
Proposed tariffs were unlikely to stretch to the financial sector, he pointed out, while there was a prospect of strong economic growth alongside higher interest rates for longer.
Hopes for further deregulation and corporate tax cuts under Trump were also driving shares, Bestinvest analysts added.
9.50am: Construction sector growth slows as house building declines
Growth across Britain’s construction sector slowed last month as a decline in house building weighed.
S&P Global’s construction purchasing managers index (PMI) fell from 57.2 to 54.3 in October, indicating the index remained in growth territory for an eighth consecutive month.
The civil engineering and commercial sub-sectors helped buoy the reading, as each continued to expand.
However, the house building segment fell into contraction territory for the first time since June over the month.
“Government policy uncertainty, fragile consumer confidence and elevated borrowing costs were all constraints on demand for house building projects,” S&P economics director Tim Moore said.
Overall build cost inflation was also said to have been stronger than the average seen over the first half of the year, while construction business confidence hit its lowest since December 2023.
9.24am: Trump win to boost near-term sentiment- analysts
ING Economics analysts have noted a win for Donald Trump would likely spell good news for equities in the near term, but headwinds could build over his presidency.
“Donald Trump’s victory will ensure a lower tax environment that should boost sentiment and spending in the near term,” ING said.
“However, promised tariffs, immigration controls and higher borrowing costs will increasingly become headwinds through his presidential term.”
Such tariffs would likely be introduced in phases, analysts continued, hitting China first before sweeping import taxes were placed on other countries later.
“Of course, what Trump proposes during an election campaign and what he eventually delivers as president may be very different.
“Europe will likely wait to see what policies Trump actually implements.”
The FTSE 100 was up 116 points on Wednesday morning as Trump remained just off the mark to confirm victory with 267 electoral votes, according to Associated Press data.
8.48am: AstraZeneca creeps up after billions wiped from valuation
AstraZeneca PLC (LSE:AZN) climbed 1% on Wednesday following a slump which saw billions wiped off its valuation on Tuesday.
This came after reports emerged that dozens of AstraZeneca China senior executives were implicated in the country’s largest insurance fraud case for years... Read more
AstraZeneca said in a statement on Tuesday evening: “As a matter of policy, we do not comment on speculative media reports including those related to ongoing investigations in China.
“If requested, we will fully cooperate with the Chinese authorities.
“We continue to deliver our life-changing medicines to patients in China and our operations are ongoing.”
8.37am: Ashtead leads risers, IHG, Rolls-Royce rally
London’s blue chips soared on Wednesday morning as investors mulled the ramifications of a second term for Donald Trump in the White House.
Ashtead Group PLC (LSE:AHT) led the way with a 5.7% jump, while Holiday Inn owner Intercontinental Hotels Group PLC (LSE:IHG) climbed 4.8% and Rolls-Royce Holdings PLC (LSE:RR.) jumped 4.4%.
Barclays PLC (LSE:BARC), Entain PLC (LSE:ENT) and Marks and Spencer Group PLC (LSE:MKS) were also among risers, with the latter having unveiled a jump in interim profit early on.
“There is relief in the market that this [election] was clean and clear,” Finalto analyst Neil Wilson commented, “no ambiguity about this result”.
“In the end, this was not a tight race, and it was wrapped up quickly. This has helped to boost risk sentiment on Wednesday, as it reduces the chance of civic unrest,” XTB analyst Kathleen Brooks added.
“The question now is, how much of Trump’s agenda will be put into practice?
“The fact that Trump did not mention tariffs or global trade in his victory speech is helping to boost risk sentiment, however, it is early days and there will be plenty of time in the future for Trump to talk about trade barriers.”
Associated Press figures continued to show Donald Trump had 267 electoral votes on Wednesday morning, just off the 270 needed for victory.
8.24am: Persimmon drops after flagging cost concerns
Persimmon led fallers on the FTSE 100 early on after flagging cost pressures on the back of new building regulations and higher employer national insurance, unveiled in the Budget.
“We are seeking to mitigate the impact of these cost increases through robust commercial controls and other management actions,” the company said.
In the third quarter, Persimmon sold 1,416 homes against 1,439 a year earlier, while private sales orders have increased to £1.45 billion from £1.04 billion since early July… Read more
Shares fell 2.4% on Wednesday morning.
8.12am: Dollar rallies, bonds sold off as ‘Trump trade’ kicks in
Donald Trump’s growing chances of securing a second term in the White House has seen the dollar rally and bond yields surge as traders weigh his impact on inflation and borrowing.
The greenback jumped 1.65% against foreign currencies as results emerged on Wednesday morning, while the yield on 10-year treasuries surged 17 basis points to 4.44%, indicating a sell-off.
This saw both the dollar and government borrowing costs hit respective four-month highs.
Expectations are that debt will further balloon under a Trump presidency, Swissquote Bank analyst Ipek Ozkardeskaya commented.
“Not only is a raft of tariffs expected to be imposed next year if Trump wins, which will push up the price of imported goods for American shoppers, his vow to kick out immigrants with waves of deportations could also have economic ramifications, potentially pushing up wage bills for companies,” Hargreaves Landown’s Susannah Streeter added.
In London, the FTSE 100 opened 71 points higher at 8,244.
7.57am: Spoons boss warns of price rises as pub chain nets record sales
JD Wetherspoon PLC (LSE:JDW) boos Tim Martin has warned of widespread price rises across the hospitality sector in an update following last month’s Autumn Budget.
“Cost inflation, which had jumped to elevated levels in 2022, slowly abated in the following two years, but has now jumped substantially again following the Budget,” he said.
“All hospitality businesses, we believe, plan to increase prices, as a result.”
Despite the spectre of pricier food and drink, Wetherspoon achieved record sales in the period, with bar sales and food both increasing by 5.7%... Read more
7.54am: Trump claims victory as count goes on
Donald Trump has claimed victory in the US election in an address to supporters as the former president inches ever closer to officially securing a second term as president.
“I want to thank the American people for the extraordinary honour of being elected your 47th president, and your 45th president,” he said.
Trump is up to 267 electoral votes, according to the Associated Press, placing him just off the 270 mark for victory over Kamala Harris.
He also hailed a Republican victory in the Senate, telling supporters “America has given us an unprecedented and powerful mandate”.
7.45am: Marks & Spencer profit boosted as food sales jump
Marks and Spencer Group PLC (LSE:MKS) has reported an increase in interim profit, aided by a jump in food sales.
Pre-tax profit climbed 20.4% to £391.9 million over the six months to September, on the back of a 5.7% rise in overall revenue to £6.5 billion.
Food sales jumped by 8.1% as the supermarket’s adjusted profit margin widened from 5.1% from 4.1%.
M&S noted value perception was at its strongest in 10 years following efforts to lower prices on the likes of fish, dairy and poultry, which aided UK volume growth of 6.5%.
Clothing and home sales ticked up 4.7% in the meantime as cost savings partially offset a reduction in margins from 12.4% to 12.0% on technology investments... Read more
7.16am: Stocks seen higher
Futures had FTSE 100 adding 47 points to reach 8,253 on Wednesday as eyes were fixed on incoming results from the US election and increasing chance of a win for Donald Trump.
Trump has appeared on the brink of securing a second term in the White House after securing victory in key battle states, North Carolina and Georgia.
NBC News, CNN and Fox News have also reported victory for Trump in the state of Pennsylvania as results are awaited from Michigan, Wisconsin, Arizona, and Nevada.
Kamala Harris had secured 194 electoral votes as of this morning, against Trump’s 265, leaving the former president just off the 270 mark for victory.
Elsewhere, Asian markets saw a mixed performance overnight as the results trickled in, while the dollar rallied 1.42% to £0.7776 and Bitcoin surged 7.4% to US$74,507.