Market Report

European stocks traded higher, buoyed by China’s central bank monetary stimulus measures, and brushing off concerns over Europe’s growth outlook. Positive sentiment in Europe comes after Asia-Pacific markets climbed overnight following Beijing’s announcement of a range of policy easing measures in a bid to stimulate the economy.

London stocks finished in the black, with miners pacing the gains after the more positive news from China, a major importer of metals.

The benchmark S&P 500 and the Nasdaq were marginally higher as investors digested a weak consumer confidence report. A Conference Board report showed an index tracking consumer confidence stood at 98.7 in September, compared with estimates of 104 as per economists polled by Reuters. 

Oil prices rose on news of monetary stimulus from top importer China and concerns that conflict in the Middle East could hit regional supply while another hurricane threatened supply in the United States, the world’s biggest crude producer.

Gold prices surged to a record high as a cocktail of factors, from hopes of further U.S. rate cuts and China stimulus measures to elevated Middle East tensions, lifted demand.

Sterling edged to a fresh 2-1/2-year peak with the Bank of England last week striking a much less dovish posture than the Federal Reserve or European Central Bank. It rose 0.2% to $1.3375, its highest since March 2022.

In stock news:

Card Factory tumbled on Tuesday as it posted a decline in first-half profit, partly due to increases in the national living wage. In the six months to the end of July, adjusted pre-tax profit fell to £14.5m from £22.1m, reflecting "substantial" rises in the national living wage, as well as freight inflation and the phasing of strategic investments.

Low-cost micro computer maker Raspberry Pi posted better than-expected interim profit in its maiden results as a listed company, sending shares in the firm higher.
Adjusted core earnings rose 55% to $21m, beating internal expectations, while on a pre-tax basis, profits were flat at $10.8m. Revenues surged 61% to $144m.