- FTSE 100 looking for a fresh catalyst.
- GSK gets FDA vaccine approval.
- UK asking prices rose 0.5% in February.
- Gold’s back on the menu for investors.
- Oil finds a floor after 3 days of losses.
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“The struggle to maintain momentum last week looks set to bleed into early trading on Monday, with the FTSE 100 broadly flat at the open. Investors are keeping a close eye on US-led peace talks for the Ukraine war, especially since EU and Ukrainian officials were excluded from the discussions. On top of that, President Trump’s threat to impose tariffs on European car imports starting April 2 is adding to the uncertainty, leaving traders cautious about the broader market outlook.
GSK has hit a big milestone with the FDA’s approval of its Penmenvy vaccine, covering five meningococcal groups for individuals aged 10 to 25. While this approval is a solid win for GSK, it also signals broader optimism for the industry, despite some lingering nerves around pending approvals given the shakeup that’s expected under the Trump administration, including layoffs at the FDA. Recent developments at GSK have significantly reduced key risks. But with forecasts largely unchanged, the valuation pressures look overdone, and this could present an attractive entry point for an impressive business trading at a 42% discount to the sector.
UK asking prices rose modestly from January to February, slightly below the typical seasonal gain, with the year-on-year increase also slowing according to data from Rightmove. Despite this, sales activity remains solid, with strong buyer demand and an uptick in new sellers. After a tough 2024, housebuilders have generally been upbeat about the outlook for 2025, and the steady market activity supports some cautious optimism.
Gold is back on the menu for investors, with a rebound after seeing its largest one-day drop in two months. The yellow metal is shining bright as traders weigh the uncertainty surrounding President Trump’s unpredictable tariff threats, the Fed’s monetary policy, and the ongoing Ukraine conflict. With a soft retail sales report reigniting bets on rate cuts, investors are eagerly awaiting the Fed’s meeting minutes later this week for any clues on further easing – all while gold continues to sparkle as a safehaven in these unpredictable times.
Oil prices found a floor with brent crude around $74.7 per barrel this morning after 3 days of losses, helped by rising fuel demand and a delay in U.S. tariffs, which helped ease concerns about global trade tensions. Prices have been under pressure recently due to expectations of increased supply from Iraq and Russia. Iraq’s Kurdistan region suggested that oil exports, halted for nearly two years, might resume next month, while peace talks regarding the Russia-Ukraine conflict could potentially lead to relaxed sanctions on Russian energy.
