- FTSE 100 closes in on all-time high
- Potential delay for new banking regulation
- US Markets shrug off NVIDIA earnings, PCE inflation data in focus
- Brent oil on track for second monthly decline
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“The FTSE 100 creeps ever closer to its all-time high, after opening 0.3% higher in early trading. It’s a stark reminder that panicking doesn’t do investors any favours, after the global sell-off earlier in the month has largely been brushed aside. Expect to see some drifting on the margin, but there won’t be too many catalysts to move markets today, meaning there’s every chance this could be the third week of gains in a row for the UK’s largest index.
US markets finished yesterday’s session broadly flat, and futures point to a positive open later today, shrugging off weakness from market darling NVIDIA. The breadth of performance was a pretty positive sign; chip stocks were down, but broader technology was one of the best-performing sectors, quelling some fears that the entire tech landscape would be hanging on the performance of a single name. Low conviction persists in the absence of any short-term catalyst to push markets higher, and we’ve seen that pull through all week with low trading volumes. The sprinkling of economic data out yesterday didn’t offer too much to change the current narrative, but the upward revision of US GDP was a tailwind for small caps. Attention turns to PCE inflation data out later today, where the expectation is that there’ll be a modest pickup in both headline and core figures compared to a year earlier.
UK banks may have to wait six months longer than expected for the new Basel 3.1 regulation to come into force, after reports have surfaced that the Bank of England will delay until at least January 2026. This won’t come as a major surprise, after the BoE already delayed its timeline for finalising the rules, and the new timeframe aligns with implementation in the US. The uncertainty is a small hit to UK banks, more so for the smaller cohort who are likely to feel the impacts more than their better-capitalised peers.
Brent futures are trading around $79 per barrel in early trading, setting the black stuff up for its second monthly decline as demand concerns linger. Worries about China’s economy are growing, as it seems likely to miss its growth targets, raising fears of declining demand across Asia. Major banks have responded by lowering oil forecasts, pointing to economic challenges in key markets and slowing manufacturing as key factors to watch.”
