Tuesday,26 November 2024 16:55:11

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Tuesday,26 November 2024 at 16:53

UK stock indexes eased from multi-week highs after U.S. President-elect Donald Trump's latest tariff proposal for some of the country's biggest trading partners sparked risk-off moves across global markets.

European shares continued to fall led by automakers, as Donald Trump's tariff threat on the US's largest trading partners prompted worries that the bloc might share the same fate in a likely global trade war.

The S&P 500 and Nasdaq extends recent gains as technology stocks rebounded, while investors parsed Donald Trump's tariff pledges on top trade partners and awaited minutes from the Federal Reserve's latest meeting.

Crude Oil is giving up its earlier gains ahead of weekly Crude Oil stockpile change numbers from the American Petroleum Institute (API). The uptick earlier came after the President-elect has confirmed to be hitting Mexico and Canada with 25% tariffs on imported goods, fading during the trading day.

Gold Prices steadied above last night's 1-week lows, stemming the precious metal's second 'Trump slump' since the White House election but remaining volatile as US stock markets extended yesterday's Bessent-at-the-Treasury gains despite Donald Trump declaring blanket trade tariffs on China, Mexico and Canada the day he re-takes office in January.

In UK corporate news, Melrose Industries was the top gainer on the index as JPMorgan Cazenove hiked its price target on the shares to 850p from 650p and placed them on "positive catalyst watch" ahead of full-year results in March.

JPM said its analysis points to the Aero Engine (AE) industry being highly attractive for investors.
"It is also a challenging industry to understand with many different business models, quite complex accounting, and high investment required to generate attractive long-term returns," it said.

JPM said this can lead to periods when the share price of an AE company significantly undervalues its true "intrinsic value"
It noted that in recent years, this has been the case with Rolls-Royce, MTU and General Electric.

"We think that Melrose is significantly undervalued," JPM said. "We place Melrose on Positive Catalyst Watch ahead of its FY24 results on March 6th 2025, when it plans to provide new medium-term guidance."

Markets

At the close

FTSE 100 8,258 (-0.40%)

FTSE 250 20,568 (-0.87%)

DAX 19,304 (-0.52%)

At 16.53

Dow Jones 44,593 (-0.32%)

S&P 500 6,007 +0.33%

NASDAQ 19,144 +0.47%

Fixed Income

UK 10-YR YIELD 4.358

Exchange Rates

GBP/USD 1.253

GBP/EUR 1.196

Commodities

Gold $2,628 +0.16%

Brent $72.79 +0.39%

Important - No news or research item should be construed as a recommendation to trade. The inclusion of securities within this report does not necessarily imply their suitability for individual portfolios or situations in respect of which further advice should be sought. Information contained in this report has been compiled from sources believed to be reliable but is not warranted to be accurate or complete.