Market Report: earnings season continues as Central Banks come into focus
Matt Britzman, senior equity analyst, Hargreaves Lansdown: “London stocks have a touch higher this morning as investors brace for a pivotal week at the Bank of England. Rates are widely expected to stay at 4% on Thursday, but the real debate is whether policymakers deliver a cut in December, with odds hovering near 50-50. With stubborn inflation and slowing growth, expectations for the year ahead are in the balance.
US futures point to a positive open as upbeat sentiment from the weekend’s US-China trade updates combines with ongoing earnings momentum. Tech remains in focus with Palantir and AMD set to report this week, both riding strong year-to-date gains and investor optimism around AI and chip demand. With trade tensions easing and big names driving the narrative, Wall Street looks ready to reward the positive narratives.
Gold edged up to $4,010 per ounce after an early dip, as traders weighed fading hopes for aggressive US rate cuts against easing safe-haven demand following a US-China trade truce. Fed chair Powell signalled last week’s cut could be the last for now, trimming market odds of a December move to about 70% from over 90%. With geopolitical tensions cooling and monetary policy uncertainty lingering, this mini rally looks cautious rather than convincing.
Brent crude oil climbed to $65.10 a barrel this morning, marking a fourth straight day of gains as OPEC+ signalled it will pause production hikes in early 2026 after a modest boost in December. The move eases fears of oversupply, while fresh US sanctions on Russian oil majors and weekend drone strikes on key infrastructure add geopolitical risk to the mix.”