- FTSE follows global markets upwards
- US initial jobless claims reach seven-month low
- John Deere and NVIDIA amongst the US risers
- Retail sales disappoint but consumer confidence picks up
- GSK granted extended approval for Arexvy in Japan
- Bitcoin testing the $100k barrier, Gary Gensler to leave SEC
- Brent Crude heads towards $75 per barrel
Derren Nathan, head of equity research, Hargreaves Lansdown:
“Markets have entered Friday in a positive mood. The FTSE is up taking its cue from Wall Street and eastern exchanges as risk appetite bounced back from earlier in the week. US unemployment claims came in below expectations reaching a seven-month low and although this may give hawks at the Fed a little more support, it’s also reflective on underlying strength in the US economy.
Risers of note across the Atlantic included AI Colossus NVIDIA rebounding after it slipped the previous day in spite of a strong earnings print. A 0.5% rise isn’t huge but when you’re the biggest company in the world it still moves markets.
Moving from microchips to tractors, shares in John Deere were up by 8%. Results were weak but not as weak as expected with the top line shrinking 28% to $11.1bn in the fourth quarter. Analysts were supportive of the group’s pull back on production and robust pricing, taking a forward-looking view beyond the current cyclical trough in the farm sector. However, the potential for a Trump driven trade war and crackdown on immigration, the lifeblood of the US agricultural workforce, means it’s an increasingly complex picture.
UK retailers will be under the microscope today after retail sales figures for October showed a 0.7% decline in volumes undershooting forecasts of 0.3%. Consumers were said to be holding back ahead of the Budget. Clothing and footwear stores felt the worst of it with volumes shrinking by 3.1%. Things are looking a little brighter in the vital run-up to Christmas however, with the GfK consumer index improving from -21 in October to -18 in November.
The outlook for sales of GSK’s respiratory syncytial virus (RSV) vaccine Arexvy has received a welcome shot in the arm with approval in Japan for adults aged 50-59. Sales and regulatory setbacks in the US have disappointed but there’s still a lot to go for in other markets.
The risk-on attitude continues to fuel a feeding frenzy for cryptocurrencies with Bitcoin at an all-time-high of $99,000 as traders eye up the prospects of supportive policies under a Trump administration. News that Securities and Exchange Commission Chair Gary Gensler is to step down in January removes a key advocate of regulation in this highly speculative asset class.
Brent crude oil prices are heading for their best week in two months with geopolitical unrest dominating the picture. Speculation that OPEC+ members may delay output increases again is also supporting the price, which now sits at around $74.7 per barrel.”
For access to stock reports and articles please visit the Hargreaves Lansdown share research homepage or sign up to our updates. Our News & Insights page now provides real time reaction to market events throughout the day via HL Live.
