London pre-open: Stocks seen muted as investors mull rate decisions
Sharecast
Published Nov 06, 2023 07:40
Updated Nov 06, 2023 08:11
London pre-open: Stocks seen muted as investors mull rate decisions
Sharecast - The FTSE 100 was called to open down five points at 7,412.
CMC Markets analyst Michael Hewson said: "Asia markets have continued the positive theme from Friday, while European stocks look set to open mixed as they look to consolidate last week’s gains."
He added: "Having come off the back of 3 successive monthly declines, there was always the possibility that we might see a bit of a rebound at some point.
"The surprise was that it came in the last three days of last week at a time when the war between Israel and Hamas shows little sign of being dialled back.
"There were a number of catalysts, with the Federal Reserve being at the heart of them, while the US bond market also saw a big rebound after the US treasury outlined lower than expected bond issuance for the quarter. Throw in a goldilocks non-farm payrolls report and a couple of disappointing US ISM reports, and US 10-year yields saw their biggest weekly decline since March, as markets started to price in the prospect of rate cuts sometime in the summer of next year."
In corporate news, FTSE 100 aerospace group Melrose said it has signed a new $5bn aftermarket services agreement with engines giant GE Aerospace.
Melrose's GKN (LON:GKN) Aerospace division is widening its current risk and revenue sharing partnership (RRSP) surrounding GE Aerospace's high-thrust GEnx engine.
The new deal, estimated at $5bn over the full 30-year-plus life of the GEnx engine, will now cover new technology insertion, aftermarket repair of high-volume engines structures, and production of fan cases for a range of GE engines.
Elsewhere, Ryanair (LON:0RYA) said it will pay its first ever dividend, as it posted a jump in first-half profit thanks to record summer traffic and higher fares.
In the six months to the end of September, profit after tax rose 59% to €2.18bn, with revenues up 30% to €8.58bn. Customer numbers jumped 11% to 105.4m and the budget airline declared a maiden dividend of €400m, or €0.35 a share.
Read more on Sharecast.com
Get The App
Written By: Sharecast
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.