LONDON MARKET: Stocks set to rise if US rates stabilise
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.UNITED KINGDOM stocks are likely to gain, buoyed by banks and insurers, including Lloyds TSB Group, on optimism that US interest rates do not need to rise much further to quell inflation.
Phone stocks may be active as Vodafone AirTouch, the world's largest mobile phone operator, reports earnings. Telecom companies led the 2.4 per cent gain in the FT-SE 100 last week.
Lloyds, HSBC Holdings, Barclays and Standard Chartered may all gain as expectations of stable rates boost demand for new loans.
A report on Tuesday is expected to show UK retail prices rose 0.2 per cent in October, down from 0.4 per cent in September, according to 15 economists surveyed by Bloomberg News. On Tuesday, the Government reports retail sales for October.
Insurers, including Prudential, CGU and Royal & SunAlliance, may advance if those reports show benign inflation, boosting the value of their bond holdings.
A report showing that productivity among US workers jumped a greater- than-expected 4.2 per cent in the third quarter has improved the chances that the Federal Reserve may keep rates on hold when it meets to set lending costs on Tuesday.
The Fed policymakers left the over- night bank lending rate unchanged at 5.25 per cent on 5 October. Some investors think stocks will gain this week even if US rates rise, as this will signal the final increase for some time.
"I would be surprised if we didn't see a new high for the market soon," said Graham Campbell, head of UK equities at Edinburgh Fund Managers. "I expect a rate increase in the US next week, but after that I don't see any adverse news until well into January."
Vodafone is scheduled to report first-half profit on Tuesday. The company said last month that it had added more than 2.6 million customers in the third quarter.
Northern Foods is also expected to report first-half profit on Tuesday. In July, the maker of Ski yogurt and Fox's biscuits said sales rose 5 per cent in the first 15 weeks of 1999, bolstered by acquisitions.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments