- Slowly UK wage growth fuels rate cut hopes.
- Vodafone calls a start to multi-year growth phase.
- US stocks rebound as government funding deal makes progress.
- Oil treads water as traders await key updates.
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“The FTSE 100 has opened with a spring in its step, as cooling wage growth fuels hopes the Bank of England will cut rates in December. Private sector pay, a key metric for the committee, slowed to 4.2% in September, while broader wages undershot forecasts. Labour market signals are softening across the board, with payrolls falling again in October and unemployment nudging higher. Markets are now pricing in a 73% chance of a December rate cut, as the case for policy easing gains traction.
Vodafone put on a confident face this morning, unveiling a new progressive dividend policy and guiding to the top end of FY26 expectations – the first signal that its self-declared growth phase is gaining traction. With pressure mounting ahead of the print, the return to service revenue growth in Germany marks a meaningful step in turning around its largest market. There’s still work to do, but the combination of upbeat commentary, improving momentum in the UK and Africa, and a stabilising European core should land well with investors. For a name priced for pessimism, today’s update offers a few glimmers of hope.
Dip buyers are sitting pretty with US stocks rebounding yesterday evening, as optimism around a potential US government funding deal helped lift sentiment. Retail favourites like Palantir led the charge, while Nvidia clawed back recent losses, reminding markets why it’s still the poster child of the AI trade. The fundamentals behind the AI trade remain compelling – momentum may not be linear, but demand signals are hard to ignore. With earnings season winding down, all eyes now turn to Nvidia’s results next week, the final heavyweight test before year-end.
Oil prices are treading water this week as traders await key updates from OPEC and the IEA. Concerns are mounting over a potential supply glut, with OPEC+ gradually easing output cuts and non-OPEC producers ramping up supply. Meanwhile, geopolitical tensions linger as US sanctions hit Russian oil majors, adding a layer of uncertainty to an already fragile market.”
