Wall Street is trying to keep the rally going as the FTSE finishes lower for the second session straight. (NDZ/STAR MAX/IPx)
The FTSE and European stocks finished in the red this Thursday after official figures showed the UK public finances performed worse than expected in November but Wall Street bounced back a day after recording heavy falls.
The FTSE 100 (^FTSE) lost 0.2% to close at 7,697 points, while in Paris the CAC 40 (^FCHI) slipped 0.3% to 7,564 points. In Germany, the DAX (^GDAXI) fell 0.3% to 16,682. Europe’s Stoxx 600 (^STOXX) retreated 0.2%.
Across the pond, US stocks climbed and were headed for a rebound from their worst daily sell-off in months as nerves settled and the prospect of interest-rate cuts buoyed spirits again.
The Dow Jones (^DJI) rose 0.6% to 37,04 points. The S&P 500 (^GSPC) climbed 0.7% to 4,730 points and the tech-heavy NASDAQ (^IXIC) gained 0.8% to 14,893.
Warnings have come that stocks are ripe for a pullback after a record-breaking rally driven by expectations the Federal Reserve will pivot to cutting rates, potentially as soon as March. The market has stubbornly stuck to that conviction despite pushback from central bank officials, keeping stock prices aloft — until the rally's breather on Wednesday.
In Asia, Tokyo’s Nikkei 225 (^N225) fell 1.6% to 33,140 after Toyota (6201.T) announced a recall of a million vehicles, and its subsidiary Daihatsu decided to suspend shipments of all models over rigged safety tests. The Hang Seng (^HSI) in Hong Kong gained 0.1% to 16,625. The Shanghai Composite (000001.SS) rose 0.6% and closed at 2,918 points.
The pound’s (GBPUSD=X) rose against the dollar, with sterling trading at $1.2670. The sterling (GBPEUR=X) was lower against the euro, trading at €1.1525.
Meanwhile, Brent crude (BZ=F) has moved slightly lower but it is still trading at around $78 (£61.56) per barrel amid jitters over global trade disruptions due to tensions in the Middle East.
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Pedro Goncalves
Hunt signs post-Brexit financial services deal with Switzerland
Jeremy Hunt has signed a financial services deal with Switzerland aimed at easing UK firms’ access to the Swiss market and vice versa.
Banking trade body UK Finance said it was a “landmark agreement” which could pave the way for deals with other key global financial centres.
The post-Brexit deal, based on mutual recognition of domestic laws and regulations, was signed by the Chancellor and his Swiss counterpart Karin Keller-Sutter in Bern.
Hunt said it was a “global first” which “builds on the UK and Switzerland’s strengths as two of the world’s largest financial centres”.
“It cements open access for financial services between our two nations for decades to come, helping us grow the economy and serving as a blueprint for future agreements with other key trading partners.”
Pedro Goncalves
Sub-4% mortgage deals hit the market
Lender Generation Home has introduced the first sub-4% fixed mortgage rate since Liz Truss’ government.
The deal is a 3.94% five-year fixed rate for those with a 40% deposit, and is part of cuts that the lender is introducing across its mortgages.
Pedro Goncalves
Friday set to be the busiest day of 2023 for cash machine withdrawals, says Link
Friday is set to be the busiest day of 2023 for cash machine withdrawals, cash access and ATM network Link predicts.
Link said that, with a four-day break ahead, comprised of the two weekend days followed by two bank holidays, ATM use is expected to peak on Friday – the last working day before Christmas for many people.
Link has also been seeing a trend of people tending to take out more money when they visit ATMs, even though they may be visiting cash machines less often.
Pre-coronavirus pandemic, the average withdrawal value was £67, but this has increased to now stand at around £86. Over Christmas, it is expected to jump to £110.
Graham Mott, director of strategy at Link, said: “Christmas is always the busiest period for cash machines with lots of people withdrawing money to pay for shopping, a round or two at the pub or as a gift.”
Pedro Goncalves
FTSE 100 lower after US and Asia sell-off
The FTSE 100 started its penultimate trading day before Christmas with a modest slump after selling in Asia and the US overnight,” said AJ Bell investment director Russ Mould. He explained:
“Disappointing earnings from delivery and logistics outfit FedEx – often seen as an economic bellwether – and a general shift in market focus from when rates will be cut to the underlying health of the economy helped to temper investor optimism.
“A downturn would be unwelcome news for corporate earnings even if central banks move on rates as the market hopes. For now, stocks are walking a tightrope to a hoped-for soft landing for the economy.
“However, a higher-than-expected core US inflation reading tomorrow could tip us back into fretting about rates being higher for longer, while any downgrade to America’s final GDP estimate for the third quarter might elevate concerns about the health of the economy.
“There was bad news on the UK’s public finances as borrowing came in ahead of the anticipated level, though the pressure this put on the pound probably spared the FTSE 100 from greater losses at the open – given the implied boost to the relative value of the index’s dominant overseas earnings.”
Pedro Goncalves
The most searched companies of 2023
Yahoo Finance UK rounded up the most searched companies of the year, from ethical fashion retailers to tech stalwarts.
Here are the businesses that piqued people's interest throughout 2023, my colleague Lucy Harley-McKeown writes.
Vinted - Fashion resale app Vinted has been at the centre of a boom in ethical shopping this year as consumers hunt for bargains and more sustainable options to fill wardrobes.
Temu - Second on the list is Temu, another consumer-focused shopping app which offers mass-produced, discounted products.
Yandex (YNDX) - Perhaps confusingly, Yandex — primarily a search engine — was one of the trending searches on search engine Google in 2023.
Shopify (SHOP) — Nasdaq-listed (^IXIC) Shopify has had a good year, with the online shopping platform's revenue rising 25% year over year to $1.7bn in the third quarter.
'We are taking difficult decisions', says Treasury Secretary
Responding to official Government borrowing figures, chief secretary to the Treasury, Laura Trott, said: “It was right to spend billions protecting people during the pandemic and the energy shock triggered by Putin’s invasion of Ukraine, but we cannot leave our children and grandchildren to pick up the tab.
“That’s why the Prime Minister has made reducing debt a top priority.
“We are taking difficult decisions in the national interest to control our borrowing needs and improve productivity, so that we deliver the public services people need while keeping inflation down.”
Pedro Goncalves
Government borrowing higher than expected in November
Government borrowing was higher than expected last month, as cost-of-living payments to lower income households continued, according to official figures.
The Office for National Statistics (ONS) said public sector net borrowing stood at £14.3bn in November, £900m less than a year earlier and the fourth-highest November borrowing since monthly records began in 1993.
The financial year-to-November borrowing figure was the second highest amount on record, totalling £116.4bn, the ONS said.
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Prince Harry and Meghan Markle have been told to 'step down' from the Invictus Games by veterans who claim the event has 'lost its meaning' and has become 'too royal'
Dannii Minogue - the presenter of BBC Three dating show I Kissed a Girl - has opened up about her sexuality, revealing that she 'identifies as queer' at the series launch
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During the 10th day of former President Donald Trump’s hush money trial, jurors heard a secret recording made by former Trump lawyer Michael Cohen that captured his boss talking about a payment to former Playboy model Karen McDougal.
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