Yahoo Finance Wall Street bounces back as FTSE closes in red
A look at how markets are performing this Tuesday
The FTSE 100 closed in the red amid a choppy session as UK gilts rallied after the Bank of England's (BoE) chief economist signalled that the central bank is open to rate cuts in 2024.
The FTSE 100 (^FTSE) lost 0.15% to close at 7,407 points, while the CAC 40 (^FCHI) in Paris lost 0.31% to 6,992 points. In Germany, the DAX (^GDAXI) bounced back to finish 0.15% higher at 15,127. The Stoxx 600 (STOXX) retreated 0.14%, with all sectors in decline.
The UK government’s cost of short-term borrowing has fallen at the fastest pace in Europe on Tuesday after the BoE’s chief economist Huw Pill raised hopes of interest rate cuts.
The rally in bond prices, which move inversely to yields, comes after Pill said investors were not “unreasonable” to predict a rate cut next summer in the clearest signal yet that the BoE is near or at the peak of its cycle of borrowing cost increases.
Across the pond, stocks on Wall Street reclaimed positive territory amid the year's best rally as investors were lifted by renewed confidence in the Federal Reserve ending its rate hiking campaign this year.
The Dow Jones (^DJI) rose 0.20% to 34,163 points. The S&P 500 (^GSPC) climbed 0.35% to 4,381 points and the tech-heavy NASDAQ (^IXIC) gained 0.97% to 13,650 points.
Investors will be listening out for confirmation when several Fed officials step up to speak this week, including two appearances by chair Jerome Powell.
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Back in London, Primark owner Associated British Foods PLC (ABF.L) announced a share buyback and a bumper dividend as it reported double-digit growth in revenue and profit.
Housebuilder Persimmon (PSN.L) revealed plunging home completions and cautioned over a “highly uncertain” property market in 2024, despite seeing demand edge up last month.
In Asia, the Hang Seng (^HSI) in Hong Kong lost 1.48% to 17,700 while the Shanghai Composite (000001.SS) closed flat at 3,057 points. Tokyo's Nikkei (^N225) also finished in the red, tumbling 1.34% to 32,271 points.
China reported a worse-than-expected drop in exports in October, while imports surprisingly rose for the month from a year ago.
Read more: UK house prices rise for first time since March
“Today’s Asia session has had to absorb today’s China trade numbers for October, as well as the latest monetary policy decision from the Reserve Bank of Australia, with markets there sliding sharply,” said CMC Markets UK analyst Michael Hewson.
Meanwhile, Brent crude (BZ=F) retreated amid mixed economic data from the world's second largest oil consumer China and was trading at around $84 per barrel.
Energy giant Saudi Aramco (2222.SR) posted a 23% drop in profits for the third quarter compared to the previous year, the result of lower oil prices and production cuts.
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