FTSE 100 and European markets down, US up as bets on Trump ramp up

How major markets are performing on Monday

Lucy Harley-McKeown
Updated
In this article:

The FTSE 100 and European stocks started the week in the red, as sentiment soured. Burberry (BRBY.L) was among the top fallers in London's premier index after it swapped out its CEO and suspended its dividend. Over in the US, markets rallied as traders digest the apparent assassination attempt on Donald Trump.

  • The FTSE 100 (^FTSE) fell 0.7% in early trade, dragged down by Burberry which lost more than 10% of its value after the opening bell. By the afternoon the FTSE was 0.8% lower. The luxury retailer said it is replacing its CEO and suspending its dividend after disappointing profit reports for the first financial quarter.

  • The DAX (^GDAXI) was 0.8% lower in Germany and the CAC (^FCHI) sank 1.2% in Paris.

  • The pan-European STOXX 600 (^STOXX) was down 1%. European stocks were following Asia lower, after a Chinese GDP miss.

  • Across the pond, the S&P 500 (^GSPC) rose 0.9%, the Dow (^DJI) was 0.8% higher and the Nasdaq (^IXIC) jumped 1.2%. US markets took cues from the fallout of the apparent assassination attempt on presidential hopeful Trump over the weekend, and, later, a speech by Federal Reserve chair Jerome Powell at the central bank.

  • Bets ramped up on a win in November's presidential election for the Republican front-runner, seen as likely to cut taxes, raise trade tariffs and ease up on regulation.

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  • Lucy Harley-McKeown

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    That's it from me — head over to our US site for more market moving news.

  • Lucy Harley-McKeown

    Burberry sparks FTSE rout

    Chris Beauchamp, chief market analyst at online trading platform IG, says:

    Burberry’s results today were dire, and the shares have reacted with a 16% drop to 14-year lows. But the read across has caught two very different sectors, retailers and mining. It’s not often the two are moved by the same story. The former have been hit by worries that Burberry’s problems are not an isolated case, and that UK consumer spending is on a downward trajectory. Meanwhile, the latter are down on China worries, amplified by the poor GDP figures that spell trouble for demand for raw materials and luxury fashion alike.

  • Lucy Harley-McKeown

    Apple stock up as AI push pays dividends

    Apple stock is up 1.9% in early trade in the US today, surging off the back of a recommendation from analysts at Morgan Stanley.

    Morgan Stanley raised its price target and designated the stock as a "top pick," citing the company's AI efforts as a boost to device sales, according to Reuters.

  • Lucy Harley-McKeown

    How US stocks are faring at the open

  • Lucy Harley-McKeown

    US department store Macy's is struggling in premarket today as it told the market it has terminated discussions with Arkhouse Management and Brigade Capital. Macy's cited the fact that the proposal lacks certainty of financing and does not provide compelling value.

    Stock looks set to open around 11% lower later on.

  • Lucy Harley-McKeown

    Goldman profits surge 150%

    Goldman Sachs (GS) reported that its second-quarter profits soared 150% from a year ago as investment banking surged, the latest signal that Wall Street is warming up after a two-year drought.

    Net income was $3.04 billion, which beat analyst expectations. Its total revenues of $12.73 billion also rose 17% from a year ago.

    The result gives CEO David Solomon more momentum following his most challenging year ever as boss.

    A year ago he was grappling with a dealmaking slump, a costly exit from consumer banking and a series of high-profile departures from the firm.

    Goldman’s stock was up slightly in pre-market trading Monday. As of last Friday’s close, the stock had climbed 24% year to date.

    It is up 114% since Solomon took over nearly six years ago.

  • Lucy Harley-McKeown

    DJT boost

    Shares in Trump Media (DJT) skyrocketed by almost 70% in pre-market trading as traders ramped up bets on Donald Trump winning the US presidential race after the attempt on his life at the weekend.

    Markets appear to be speculating that the assassination attempt makes a Trump victory in the November presidential election more likely, and that that would benefit TMTG, despite its financial struggles so far.

    Charu Chanana, market strategist at Saxo Capital Markets, said: “With markets pricing in a greater possibility of Trump 2.0, the US dollar will likely get some tailwinds while the Mexican peso and Chinese yuan could suffer. Trump trades could be back in focus.”

    Markets expect a Trump presidency to mean looser fiscal policy and higher tariffs on overseas goods.

    Mark McCormick, global head of foreign-exchange and emerging-market strategy at Toronto Dominion Bank, commented: “For us, the news does reinforce that Trump’s the frontrunner,” said. “We remain US dollar bulls for the second half and early 2025.”

    Trump Media & Technology Group describes its mission as ending Big Tech’s assault on free speech by opening up the internet and giving people their voices back.

  • Lucy Harley-McKeown

    Bitcoin on the up after Trump incident

    Bitcoin is almost 5% higher in today's session, trading above $63,000 for the first time in two weeks.

    Neil Wilson, chief market analyst at Finalto, says this is partly a reaction to the news of Donald Trump's assassination attempt over the weekend.

    "It not just he’s seen a ‘pro-crypto’, it’s a fear trade," Wilson said. "I think there is a genuine fear about what could happen in America. Trump is talking about bringing the country together."

    "We could see a change… The former president will give a "whole different speech" on Thursday, instead of the planned "humdinger”. Can Trump the survivor become Trump the saviour?"

  • Lucy Harley-McKeown

    UK property asking prices dip as buyers hope for interest rate cut

    Here's Yahoo Finance reporter Pedro Goncalves' take on the house price data this morning:

    The average asking price of a UK property fell by 0.4% in July amid signs that some buyers are waiting for the Bank of England (BoE) to cut interest rates.

    Across Britain, the typical new seller asking price fell by 0.4%, or £1,617, month-on-month in July to £373,493, down from £375,110 in June, Rightmove said.

    The data suggests sellers are putting their property up for sale with lower prices to attract buyers, particularly at the top of the market where average asking prices dropped 1.3% on a monthly basis and by 1% annually to £681,096.

    This is a slightly bigger drop than normal at this time of year, according to the property website. Asking prices have dropped by an average of 0.2% in July over the past two decades, due to the slower holiday season.

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  • Lucy Harley-McKeown

    Pound continues up towards $1.30 mark

    Sterling is pretty unremarkable today, but it is holding its strength against the dollar, hovering just below the $1.30 mark. It's around $0.02 higher than this time last week, strengthening on increased political stability in the UK.

  • Lucy Harley-McKeown

    Foxtons CEO view on house prices

    Guy Gittins, CEO of Foxtons, said:

    It's already abundantly clear that now the political dust has settled, the post-election market is seeing a notable increase in activity in the few short days that have followed.

    It’s now a case of ready, set, go for the nation’s buyers and sellers and we expect market momentum to continue to strengthen over the summer, especially with the prospect of a rates cut due in September which could release even more pent up buyer demand - particularly at the one million pound and above price threshold.

  • Lucy Harley-McKeown

    Housing affordability data

    Housing costs have seen quite an alarming uptick since the pandemic, Rightmove data suggests.

    Chart: Rightmove
    Chart: Rightmove
  • Lucy Harley-McKeown

    Rightmove: New seller asking prices pulled lower in July

    Here's the latest from the housing platform:

    The average price of property coming to the market for sale drops 0.4% to £373,493 — a fall of £1,617. This is a bigger drop than the 20-year July average of -0.2%, as sellers try to capture the attention of buyers with a more tempting price heading into the thick of the summer holidays and the Olympics.

    Home-movers are dealing with more diversions than normal at this time of year, having just come through the distractions of the general election campaign and the Euro football tournament, but prices remain stable overall at 0.4% higher than a year ago.

    Despite concern among some that the general election campaign would lead to a significant slowdown in home-moving activity, Rightmove’s millions of data points show that the vast majority of people have been getting on with their moves since the election was called. The political certainty of having the next government in place is likely to aid home-mover confidence heading into the second half of the year. What is still outstanding and of more pressing concern to home-buyers is when the first interest rate cut will be, with persistently high mortgage rates continuing to test affordability.

  • Lucy Harley-McKeown

    Burberry CEO to step down

    Burberry CEO Jonathan Akeroyd is set to step down, the luxury fashion house said on Monday, with American executive Joshua Schulman set to be helicoptered in a replacement.

    The moves come following disappointing financial results for the first financial quarter. The trench coat stalwart suspended its dividend and said it expects to swing to an operating loss in the first half of the financial year.

    Stock closed last week 1.3% higher, but looked set to fall at the opening bell in London.

  • Lucy Harley-McKeown

    US stocks on Monday

    After closing higher last week, US stock futures appear to be set to continue their ascent when markets open later on, as traders work out how to react to the assassination attempt on Donald Trump over the weekend.

    The dollar and bitcoin are also pushing higher, while a selloff is underway in longer-term US treasuries.

    Jerome Powell's speech later will also be on the minds of markets, as bets are hedged for a September rate cut.

  • Lucy Harley-McKeown

    Overnight in Asia

    This morning saw some heavy selling across Japanese and China-based stocks, with the Nikkei (^N225) down 2.5% and the Hang Seng (^HSI) falling 1.6%.

    The Nikkei is coming off all-time highs after it blew past the 42,000 mark.

    The moves come following Chinese GDP data which missed forecasts. Chinese economic growth slowed to 4.7% in the second quarter, missing the predicted 5.1% year-on-year bump. In Q1, growth stood at 5.3%.

  • Lucy Harley-McKeown

    Good morning!

    Hello! Lucy Harley-McKeown here with another day of markets news. The FTSE 100 is set to drop at the opening bell alongside the DAX and CAC.

    We've already had GDP numbers from China and UK house price data from Rightmove. Later today we'll have more Fed signalling from Jerome Powell and Goldman Sachs earnings.

    Let's get to it.

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