- FTSE 100 up 104 points at 9,787
- Rightmove post-mortem continues
- Diageo pops on new CEO appointment
- FTSE 250-listed JTC accepts private equity offer
4.52pm: New record high
The FTSE 100 finished Monday’s session at a record high, adding 104 points at 9,787 after hitting an intraday high above 9,800 earlier in the session.
“Last week’s orderly selloff threatened to become much worse at times, but the theme of the last six months reasserted itself late on Friday,” IG chief market analyst Chris Beauchamp said.
“A year after Donald Trump’s election, it is clear that markets are still firmly in rally mode, having gotten over their April tantrum. Investors remain keen to buy the dip.”
4.13pm: FTSE hits new intraday record
The Footsie has broken new ground, flying to a new intraday high of just over 9,800.
Fresnillo, the Mexican silver and gold miner, is the top riser as trading heads into the final minutes on Monday, up over 6% as gold and silver prices climb 2.3% and 3.1% respectively.
There is more green in the upper reaches of the index, with only three stocks among the top 15 largest in red.
Rolls, Barclays and Lloyds are all up over 2%, with AstraZeneca, HSBC and Natwest not far off this.
"The effects of the beginning of the end of the US shutdown continue to be felt across financial markets," says market analyst Kathleen Brooks at XTB.
"European stocks are a sea of green, led by the financial, industrial and tech sectors. US stock market futures are also pointing to a strong open, and tech stocks that led last week’s sell-off are expected to have a strong start on Monday."
She says the "Monday effect" has seen stock markets tend to perform well at the start of the week, with the S&P 500 having posted a gain 69% of the time on the first day of the week, according to Bloomberg.
"This could be part of the dip-buying that has taken markets by storm this year and helped spur recovery in stocks after the selloff in April, with investors willing to buy any lows after a weekend break."
She adds that "risk is back on", with last week’s sell-off potentially seeming "like a distant memory".
"There are some risks ahead, but unless we see a meaningful decline in Fed rate cut expectations, or a weak earnings report from Nvidia next week, then stocks could be poised to rally into year end."
3.40pm: Competition for AIM and Aquis?
Two City veterans are raising money for a new growth market to fill what they see as a UK listings gap.
Martin Graham, the ex-head of AIM, and Jon Prideaux, formerly chief executive of Boku, are seeking about £4 million to build the Global Growth Market (GGM), a venue pitched as a “mini-Nasdaq” for venture capital-backed businesses, according a report from Sky News.
Graham and Prideaux point to research indicating more than 30,000 late-stage venture companies, worth roughly $4 trillion, are stuck in private portfolios without easy routes for exit or obtaining employee liquidity.
GGM’s proposition is to target late-stage private companies that have struggled to tap public investors. Instead of traditional fund structures, GGM would forgo management fees and carried interest in return for providing around half of the capital needs of qualifying issuers, a tweak designed to draw venture money into quoted equities.
2.55pm: Nasdaq leads way in NY
US stocks have opened the week higher, with tech driving the gains.
The Nasdaq rose 2% in early trading, while the S&P 500 added 1.2% and the Dow Jones climbed 0.4%.
Top risers on the S&P are Micron Technology, up 7%, Palantir Technologies and Western Digital, both up over 6%.
Seagate Technology, AMD, and Super Micro Computer are all up 3-5%. Eli Lilly is another on the front foot, after Novo Nordisk withdrew its rival bid for Metsera.
12.58pm: Markets accentuating the positive
The FTSE skirted close to its all-time highs above 9,780 earlier in the session and is trundling along at just below that now.
Diageo is still top of the leaderboard, up over 7%, followed by precious metals miners and tech investment funds.
Fresnillo is up 5.3%, Polar Capital Tech Trust is up 4.4%.
Copper-focused miners, banks and all sorts are up over 2%.
US futures are sharply higher too, especially tech stocks. Nasdaq 100 futures are up 1.5%, while those for the S&P 500 and Dow Jones are 0.9% and 0.4% respectively.
"If you haven’t heard yet," says market analyst Kenny Polcari at Slatestone, "It’s all about ‘accentuating the positive (today)/and eliminating the negative’".
This, as all market analysts are saying, follows a softening of a few Senate Democrats over the weekend, with flight chaos stemming from the shutdown's effects on the Federal Aviation Administration, "clearly adding pressure to the process".
"Democrats joined in with the Republicans on a procedural vote to try and end the shutdown – House Democrats are not happy with their colleagues across the hall and vow to fight on and vote it down."
Polcari adds that "suddenly" the worries about technology valuations that were plaguing the markets have been "swept aside".
"Now, to be clear, it is not done yet – this has to go to the House and Jeffries (along with a host of others) have said that it is DEAD ON ARRIVAL and so the drama continues, but the markets are expecting that while we might have more drama – this issue is about to be resolved – and so now, we can put this behind us (as far as the market is concerned.)
"In the end, the shutdown does nothing but create further risk for Americans and the markets – and the longer it continues the more risk there is."
12.22pm: Mid-cap and smaller stories
Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) has spent £40.9 million on new grocery properties, including a large Tesco in Northern Ireland and ten Sainsbury’s convenience stores. The purchases are expected to boost earnings and extend lease terms as the company reinvests proceeds from its Blue Owl Capital partnership. Read more
Eagle Eye Solutions Group PLC (AIM:EYE) flew higher after a big five-year North American contract win. Read more
Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF)) has upgraded its Phalaborwa resource in South Africa to include yttrium, a key heavy rare earth under Chinese export controls. The company says demand is rising fast, and the update confirms Phalaborwa as a major near-term source of strategic rare earths for Western supply chains. Read more
Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL, VFEX:CMCL) posted a 52% rise in quarterly revenue to $71.4 million, helped by higher gold prices and stronger sales. Profit and free cash flow surged at the Blanket Mine in Zimbabwe, and the company declared a quarterly dividend of 14 cents a share. Watch more
MP Evans Group PLC (AIM:MPE) says strong palm oil and kernel prices are set to lift full-year revenue and profit. The Indonesia-focused producer reported record crop volumes and solid cash generation, clearing all outstanding loans in the process. Read more
Buccaneer Energy Plc (AIM:BUCE) says its Allar #1 well in Texas reached target depth but didn’t hit commercial hydrocarbons. The well will be plugged, with drilling now moving to the nearby Fouke #4 prospect within the Pine Mills Field. Read more
Shares in Shuka Minerals PLC (AIM:SKA) dropped 16% after the company provided an update on funding for its planned acquisition of Leopard Exploration and Mining Limited (LEM), owner of the Kabwe Zinc Mine in Zambia. Read more
11.46am: Diageo new CEO is a 'heavyweight'
A couple of reactions to Diageo's CEO appointment of former Tesco boss Sir Dave Lewis.
Analyst Edward Mundy at Jefferies says this "ends the uncertainty over leadership transition and brings a heavyweight leader with extensive CEO experience on both brand building and transformation".
The shares are up 7.2%, with the Mundy suggesting the market is expecting Sir Dave to "build on the sharpened strategy implemented by interim CEO Nik Jhiangiani".
Morningstar analyst Verushka Shetty said this follows a "challenging period" for the company, including a nearly 43% drop in share price under previous CEO Debra Crew’s two-year tenure.
She says Lewis "led a successful transformation between 2014 and 2020 through cost-cutting, strategic disposals, and streamlined management, resulting in structurally higher margins and a positive market response. While the spirits industry differs from grocery, we’re encouraged by the leadership and turnaround experience the new CEO brings to Diageo".
11.04: Two downgrades and an upgrade for Rightmove
After a freaky Friday that saw the stock tumble almost 30% at one point, Rightmove PLC (LSE:RMV) shares are on a more even keel on Monday (down around 0.8%).
However, its decision to ramp up investment in AI appears to have divided City opinion.
The post-mortem saw UBS and RBC Capital downgrade their calls from ‘buy’, while Panmure Liberum took the contrarian route and upgraded to the same rating.
Although the junior of the trio, Panmure’s take seems to be that the stock has been oversold at these levels. “With the second investment programme in two years, the shares are now discounting a scenario behind even our cautious forecasts,” its morning note to clients observed.
Rightmove is valued at about 18.6 times its yearly profit and roughly 13.7 times its operating earnings before interest and tax: levels that might look a touch pricey for an ordinary business.
But Rightmove isn’t your standard outfit; it’s classed as a tech play, soon to be an AI tech play. By that logic, a near-19-times multiple looks positively modest, or so the story goes.
Of course, logic and valuation discipline often go missing when investors chase the next big thing.
Otherwise, how else would Palantir command a price tag equal to 137 times its sales?
No diss intended toward the tech bulls at Panmure, just an observation on how frothy valuations can get.
The truth is, by US tech market standards, Rightmove’s current rating looks almost a bargain. And let’s face it, the UK has always been a little curmudgeonly about embracing the new and the bold.
9.49am: RHI Magnetisa rebounds
Top riser in the FTSE 350 is RHI Magnesita NV (LSE:RHIM), which has surged 15.3% after reporting improved profitability for the four months to October. The shares had recently been trading at two-year lows
CEO Stefan Borgas said the performance was driven by cost-cutting, plant closures and early gains from the Resco acquisition "despite subdued demand conditions".
Analyst Vanessa Jeffriess at Jefferies said the update "should come as a relief" to investors, showing trading was "resilient... in a very tough backdrop, particularly when we look to the strong sequential margin improvement".
"Reiterated guidance is helpful given risk from the large 2H weighting (as we outlined here) and recent share price weakness, and it is positive to see momentum in the Industrial order book (and re-established market share in India in the Steel segment), which is supportive for 1H26F."
9.07am: Sea of green for stock markets
It's a sea of green across European stock markets this morning, with the Footsie up 0.7%, Germany's DAX jumping 1.5%, France's CAC rising 1.15% and the Euro Stoxx 50 up 1.5% too.
Market analysts are unanimous that this is down to hopes of an imminent end to the US government shutdown.
On Sunday, US Senators voted 60-40 on a key step towards reopening.
"Worries about the longest shutdown in history had driven consumer confidence to its weakest level in more than three years," says Saxo analyst Neil Wilson, while private data showed the largest number of October layoffs in 22 years.
The deal being voted on in Washington would fund the government through to January, which should result in the release of various missing economic data.
This "may introduce some extra volatility", says Wilson.
He also pointed to some further positive noises on US-China trade, with exports of Chinese rare earth and critical minerals resuming, as well as year-long suspensions of port fees.
8.47am: London IPO resurgence predicted
The head of Lazard’s UK investment banking division expects a resurgence of large and mid-sized IPOs in London next year as companies outgrow private equity ownership and enthusiasm for Wall Street flotations wanes.
Cyrus Kapadia told The Times that several firms valued above $10 billion were preparing for initial public offerings (IPOs), describing London as their “natural destination”.
Kapadia highlighted that many private equity-backed firms had expanded through successive funding rounds and continuation vehicles to the point where listing was now the main route to realising value.
Potential candidates include Uzbekistan’s gold miner NMMC, Norwegian software group Visma, and UK fintechs Revolut and Monzo, alongside IVC Evidensia, Ardian and Indurent.
After a slump in listings since 2021, Kapadia argued that London’s IPO market stands to benefit from easing listing rules and fading perceptions that US markets deliver higher valuations.
8.15am: Stocks pop higher at the open with Diageo in lead
The FTSE 100 has blasted out of the blocks, jumping 65 points higher to at 9,747.83 – a gain of 0.7% to recoup some of the losses from the last two days of last week.
Top of the leaderboard is Diageo PLC, up 7% as investors like the look of the appointment of Sir Dave Lewis as its next chief executive.
Precious metals miners are next, with Fresnillo and Endeavour Mining lifted by a strong rebound in the gold price.
A rise in copper prices is also lifting Antofagasta, Anglo American and Glencore all more than 2% higher, while oil heavyweights Shell and BP are also doing some work, both up almost 1%.
Elsewhere, tech-focused Polar Capital Technology Trust and Scottish Mortgage Investment Trust are gaining ground alongside US futures.
7.44am: Diageo CEO and JTC accepts offer
Guinness and Smirnoff maker Diageo PLC (LSE:DGE) has appointed former Tesco boss Sir Dave Lewis as chief executive, starting in January.
Lewis, who led the UK's largest supermarket chain from 2014 to 2020, also brings three decades of experience at Unilever.
He is currently chair of Haleon, a role he will step down from at the end of December, and a non-executive board director at PepsiCo.
Elsewhere, JTC PLC (LSE:JTC) has accepted a £2.3 billion all-cash takeover offer from private equity firm Permira, after rejecting two bids back in August.
Under the terms of the deal, shareholders in the FTSE 250-listed provider of fund administration and corporate services will receive 1,340p per share.
This is a 49% premium to the price before the first offer was made, and is 15% above the most recent rejected offer, which was 1,165p a share.
7.16am: FTSE to come out all guns blazing
The FTSE 100 is expected to come out all guns blazing at the start of the week, after two days of retreating, with analysts hailing reports that the US government shutdown could end soon.
On the futures market, a gain of 83 points was predicted for the London benchmark on Monday, after it fell 34 points over the whole of last week to end at 9,682.57.
US stock futures are also strongly higher on Monday, after a bad week that saw the Dow Jones lose 1%, the S&P 500 drop 1.7% and the Nasdaq fall 3.65%.
Asian markets are positive this morning, led by the Hang Seng's 1.4% gain, while Japan's Nikkei is up 1.3%.
"Last week was a tough one," says market analyst Ipek Ozkardeskaya at Swissquote, pointing to a "cocktail of rare but discouraging US data" from private company surveys in the absence of government data due to the shutdown.
"Falling yields failed to lift risk appetite, and better-than-expected tech earnings couldn’t lure investors back on board.
"But this morning, things look calmer. The news that the US government shutdown could finally come to an end lifts market sentiment, after the Senate put together the 60 votes needed to push the deal through its first stage.
"It’s only the opening act in what could still be a drawn-out political drama, but investors are seizing on any sign of progress to end the longest US government shutdown in history and feed on data — data they need to understand where the US economy stands, where inflation and jobs are headed, and what the Federal Reserve (Fed) should do next."