Market Report: UK markets stage a mini rebound after yesterday’s disappointing inflation print
Matt Britzman, senior equity analyst, Hargreaves Lansdown: “The FTSE 100 is digging its heels in and putting on a mini rebound this morning after a disappointing session yesterday that was overshadowed by higher-than-expected inflation, which has dampened hopes for swift interest rate cuts. Across the pond, it was a largely uneventful session, with investors gearing up for Nvidia results after markets closed. The bellwether for the AI transition may have failed to ignite a flame, but this strong print bodes well for the coming year (more on this below).
Halma continues to shine, delivering record-breaking results as sales pass £1bn for the first time off the back of strong growth across its safety and environmental businesses, even as healthcare faces challenges. The company’s focus on sustainability and long-term trends like stricter safety rules and climate change solutions keeps it ahead of the curve. With a series of smart acquisitions boosting its portfolio, Halma’s steady strategy and innovative approach show it’s not just growing – it’s thriving. Looking ahead, Halma’s proven resilience and commitment to making the world safer and cleaner leave it well-positioned for future success.
The Bitcoin boom shows no signs of slowing, with the crypto king surging past $97,000 and edging closer to the coveted six-figure milestone. Just months ago, $100,000 seemed like a distant dream, but now it feels almost inevitable as optimism swells across markets. Trump’s anticipated return to the White House is fuelling hopes of a more crypto-friendly federal stance, adding to the bullish sentiment that’s already driving risk assets higher. Investors are closely watching for signs of regulatory clarity, with speculation swirling about SEC Chair Gary Gensler potentially stepping down, which could pave the way for a friendlier stance on crypto. The Bitcoin and crypto debate will wage on, but as the market grows and regulation looks like a realistic near-term outcome, it’s becoming harder for investors to look the other way.
The DoJ has officially laid out its final remedies for the Search antitrust case, bringing some clarity to a long-running saga for Alphabet. Key measures include banning exclusive search contracts, divesting Chrome, limiting preferential treatment for search on Android and YouTube, and requiring Google to share search and ad data to support competition. Alphabet will respond and likely flag concerns about sharing search data, but broadly speaking, this isn’t a terrible set of outcomes, and it’s easy to make the case that Alphabet looks attractive from here, especially when you look at its discount to the broader US market.
Brent crude oil is moving higher, sitting above $73 per barrel, as geopolitical tensions outweighed concerns over rising US crude supplies. Ukraine’s use of Western long-range weapons and heightened Middle East unrest fuelled fears of potential supply disruptions. However, gains were capped by a third consecutive weekly rise in US crude inventories. Those same geopolitical fears have also sent gold higher in recent sessions, now hovering above $2,650 an ounce as investors look for some safety as Russia-Ukraine tensions escalate.”
Derren Nathan, head of equity research, Hargreaves Lansdown: “NVIDIA smashed Q3 forecasts last night, doubling both sales and underlying EPS to $35.1bn and $0.81 respectively. It’s also come out with Q4 guidance a little ahead of expectations. The market may have been wanting a little more but it’s hard to find fault in the performance. The results reinforce the view that NVIDIA is a once in a generation company shaping the next industrial revolution, and it’s only supply that’s stopping even faster growth as demand for the next generation Blackwell chips surpasses initial hopes. The ability to scale will be closely watched as NVIDIA seeks to grow into what it views as a market that could reach $2tn by the end of the decade.”
