- FTSE 100 down 4.8 points at 9,534.9
- Wall Street opened in the green
- Alphabet and Alibaba saw AI boosts
- S4 Capital's all-time low
- BHP shelves second Anglo American bid
5.11pm: FSTE dips into the red
The FTSE 100 finished Monday's session almost 5 points lower than it started, at 9,534.9. It was a different story across the Atlantic, with tech stocks leading Wall Street higher. The tech-laden Nasdaq had added 2.2% in the early afternoon.
“The stage seem set for a continued rebound as another Fed member joins in calls for a December rate cut, while a call between the US and Chinese leaders also helped to bolster sentiment," IG chief market analyst Chris Beauchamp said.
"Last week’s flush on Thursday may well have heralded the last hurrah of the selling for the time being, especially as tech traders appear to be piling into Alphabet as the newly-anointed AI winner.”
4.20pm: FTSE 100 softens into Monday's close
London's blue-chip benchmark pointed 14 points, or 0.15%, higher with the index softening into Monday's close.
Into the last knockings, the FTSE 100 was pitched at 9.551. At the same time, US benchmarks remained in the green.
Altogether, it was a largely neutral session with most of the market's attention on this week's politics - and further afield, the AI stocks story in the United States.
Russ Mould, AJ Bell's investment director, in a note on Monday, highlighted rising GILT yields as a potential early warning signal, ahead of next week's budget, albeit he reckons (for now) the market is steady in anticipation of the Chancellor's red briefcase.
"Rachel Reeves will be approaching her second Budget with memories of the upset in financial markets caused by September 2022’s mini-Budget still fresh in her mind, but she also has to appease voters and consumers while sticking to manifesto promises on tax and international commitments to increase defence spending,” Russ Mould, AJ Bell's investment director, said in a note on Monday.
“Healthy gains in the FTSE 100 and the absence of tremors in sterling suggest that stock and currency markets are happy enough with their lot, and Labour’s influence over it. But an increase in the benchmark 10-year gilt, or government bond, yield means the chancellor will have to be careful when she delivers her speech and latest fiscal policy package on Wednesday."
3.15pm: FTSE 100 steady, US tech stocks rally
London's FTSE 100 was drifting towards a somewhat innocuous finish for Monday, as investors on this side of the pond mark time ahead of next week's budget and as American counterparts start the shortened Thanksgiving week.
In the City, the FTSE 100 was up 29 points for that day, at 9,569 with around 90 minutes of trading to go.
Over in New York, meanwhile, the Dow edged 0.18% (81 points) higher to 46,335, whilst the S&P 500 tacked on 0.95% (62 points) to 6,663.
The Nasdaq was stronger, with tech and AI stocks seen rallying after last week's volatility.
In particular, Alphabet shares were boosted, up over 5% to $316, boosted by apparent momentum for its AI model Gemini 3, while Alibaba stock was up after the strong debut for its Qwen AI app.
More broadly, sentiments are supported by recent remarks from Federal Reserve policymakers, including Christopher Waller and John Williams, which hinted at a shift toward monetary easing.
Nevertheless, some investor caution remains amid economic uncertainty and delayed data releases from the recent government shutdown.
Bitcoin slipped again, trading near $86,000.
1:55pm: Analysts caution over retail brands ahead of UK budget
This Wednesday's UK Budget could introduce fresh pressure points for major retailers, even as the Chancellor reportedly backs away from raising income tax rates, that's according to a research comment from UK-based analysts at Citi.
With attention shifting toward measures aimed at businesses, the bank’s analysts have modelled the potential hit from higher business rates on large-format stores, concluding that J Sainsbury PLC (LSE:SBRY) and Tesco PLC (LSE:TSCO) would be the most exposed, meanwhile, Citi sees JD Sports Fashion PLC (LSE:JD., OTC:JDSPY), Next PLC (LSE:NXT)and Currys PLC (LSE:CURY) feel lesser impact.
Citi also highlights a second policy risk gaining traction: the possible closure of the small-parcel duty exemption, a loophole recently targeted in the US and EU.
If applied in the UK, the bank believes it would slightly ease competitive pressure, particularly in the value end of the market, by levelling the playing field between established retailers and low-cost overseas importers.
With consumer sentiment weakening in the weeks leading up to the fiscal event, Citi argues that clarity on tax policy will be welcomed across the sector.
While uncertainty remains around the exact scope of business-focused measures, the analysts suggest that confirmation, either way, should help retailers firm up planning for 2025 after a volatile autumn trading environment.
1.15pm: Here's why Vistry is up
It took a bit of digging, but we found it: The reason for Vistry's 4% ascent in early afternoon trading to top the FTSE 250.
Goldman, in an initiation note, highlights the builder as one of its top sector picks.
As the largest provider of affordable housing, it is set to benefit from government plans to ramp up social and affordable delivery.
Its analysis shows Vistry’s market share running five times larger than the next pure-play competitor.
With more public funding flowing into the sector and a cleaner post-restructuring base, Goldman thinks Vistry can push revenue growth to the high end of its 5% to 8% medium-term target.
12.33: Wall Street set for positive start
US markets are tiptoeing into Thanksgiving week with a hint of swagger. Futures pointed mostly higher on Monday as traders clung to the idea that an interest-rate cut could still sneak onto the Federal Reserve’s December agenda. After a rocky fortnight that knocked the shine off this year’s artificial-intelligence high-flyers, investors appear ready for another attempt at a rebound.
S&P 500 futures nudged up around 0.3%, while Dow contracts drifted just below unchanged. Tech was doing the heavy lifting yet again, with Nasdaq 100 futures up about 138 points, or 0.7% as traders looked to stretch out Friday’s recovery.
The mildly better mood followed comments from John Williams, president of the Federal Reserve Bank of New York, who floated the possibility that policymakers could still cut rates before year-end.
Economic data is slowly re-emerging after the record-long government shutdown, though the full calendar remains thin. Tuesday will bring two key September readouts (producer prices from the Bureau of Labor Statistics and retail sales figures from the Census Bureau).
Earnings season is also winding down, leaving a lighter slate for the holiday-shortened week.
10.50am: Sorrell woes
S4 Capital is now trading at an all-time low. That's a far cry from the bullish early days of Sir Martin Sorrell’s self-styled “new-era” digital empire.
The shares slumped another 7% to 16.48p after the company admitted that the fourth quarter is shaping up to be weaker than hoped. Not great optics for an 80-year-old industry titan who once turned WPP into a world-beater.
October’s numbers and a revised third-quarter forecast revealed the problem: clients are sitting on their hands, project work is thin, and the much-touted new business pipeline is taking its sweet time to convert.
S4 now expects like-for-like net revenue for 2025 to fall by just under 10%, and operational earnings to land around £75 million, well short of market expectations.
Cost cuts have helped, but only so much. The reality is that S4 still lives and dies by discretionary marketing budgets, and right now those budgets remain firmly bolted down.
One small glimmer? Liquidity is improving and year-end net debt should come in between £100 million and £140 million. A comfort, perhaps — but hardly the grand creative comeback Sorrell once promised.
9.30am: Miners in demand
After an initial burst, the blue-chip index pared its early gains as traders took a wait-and-see approach to the week's trading.
Precious metals shares enjoyed a bright start to the week as traders grew more confident that the US Federal Reserve is edging closer to cutting interest rates.
Lower rates tend to weaken the dollar and reduce the “opportunity cost” of holding gold and silver, which do not pay interest.
When the prospect of a cut grows, bullion often rises and the shares of miners follow.
Endeavour Mining (up 3.6%) and Fresnillo (ahead 2.5%) were among those gaining ground as the gold price continued to firm.
Elsewhere, in the sector, BHP Group confirmed it would not return with a second attempt to buy Anglo American after its initial approach was rejected, a decision that calmed nerves about an extended takeover battle and helped steady sentiment across the wider mining industry.
As the drama played out over the weekend, it left both BHP and Anglo little changed, though analysts raised a collective eyebrow over BHP’s flip-flopping strategy.
On a lively day for the diggers, investors pushed up Glencore, which climbed 1.8%, and copper miner Antofagasta, ahead by 1.6%.
Copper prices have been resilient thanks to expectations of stronger demand from electrification projects and data showing steadier global manufacturing activity.
The mix of rate optimism, firmer metals prices and easing takeover pressures gave the resources sector a broadly upbeat tone.
8.15am: And we're off
The FTSE 100 opened 40 points higher at 9,579, with Fed rate cut hopes buoying sentiment and with it Asia's main markets before London's open.
In the US, the week's proceedings will be made a little trickier by a day's break in the US for Thanksgiving.
And the holiday comes with this warning from veteran commentator Richard Hunter from Interactive Investor.
"This lower trading activity could result in higher volatility, particularly with the overarching debate around AI valuations still at elevated levels," he said in his early morning missive.
Pre-market: Bright start predicted
The FTSE 100 is expected to open around 47 points higher at 9,587 on Monday, catching the tailwind from a brighter session across Asia after a senior Federal Reserve official signalled that another US rate cut remains on the table before year-end.
John Williams, president of the New York Fed, said on Friday that a softer labour market now poses a greater threat to the economy than inflation, prompting traders to lift bets on a December easing.
Futures markets now assign roughly a 70% chance of a quarter-point cut at the Fed’s final 2025 meeting, up sharply from about 44% a week earlier.
Asian equities responded positively after a bruising week dominated by tech-led losses.
Hong Kong’s Hang Seng gained nearly 2%, led by rebounds in technology and healthcare names.
The risk-on tone reflected a recovery in the US on Friday, where all three major indices advanced, with the Dow rising 1.08%, the S&P 500 up 0.98% and the Nasdaq gaining 0.88%.
The early corporate headlines will likely be dominated by a second aborted bid by BHP for Anglo American.