Business news: US inflation and M&S (MKS) share price soar
By Jenny McCall
14:00, 10 November 2021
Biggest UK MOVERS on the FSTE 100 today
- ITV – ITV Plc: +13.04%
- SSE – SSE Plc (formerly Scottish and Southern Energy): +2.17%
- BP – BP Plc: +2.06%
- NG – National Grid: +1.96%
Source: Hargreaves and Lansdown
Despite no longer being listed on the FTSE 100, British multinational retailer Marks and Spencer’s (M&S) spectacular shares rise is worth a special mention: Marks and Spencer (MKS) rose by +25.05%.
What is your sentiment on UK100?
Biggest UK LOSERS on the FTSE 100 today
- DARK – Darktrace plc: -2.62%
- AVV – AVEVA Group Plc: -2.68%
- BRBY – Burberry Group plc: -2.03%
- FRES – Fresnillo: -1.64%
Source: Hargreaves and Lansdown
Key points
- US markets woke up to key inflation and consumer price index (CPI) data on Wednesday. The CPI data revealed that inflation in October hit a record high and was up 6.2% on an annualised basis – the largest 12-month increase since November 1990, according to new data from the US Bureau of Labor Statistics (BLS).
- Financial updates were also busy across Europe, with abundant earnings reports published by companies including Credit Agricole, Engie, Alstom, EDF, Allianz, Continental, Dialog, E.On, Infineon, Siemens Energy, ABN Amro, Thomas Cook and Marks & Spencer (M&S), Adidas and others.
- Elsewhere, European stocks were mixed on Wednesday as it awaited key data on US inflation.
- Data for US October producer price index (PPI) came in on Tuesday, with PPI rising 0.6% month-on-month. Wholesale prices increased by 8.6% in October, versus the prior year.
Top business and economic news
- Investors eagerly awaiting today’s US CPI and inflation data were unsurprised at the expected rise compared to the prior month.
- European Central Bank (ECB) – the ECB non-monetary policy meets today to administer foreign exchange reserves, deal with regulators and manage foreign policy.
- Amazon and US airlines have joined together to push for a speedy development of carbon-reduction strategies by using sustainable aviation fuels (SAF) in an effort to decrease their collective carbon emissions-intensive footprints.
- Europe’s second high court dismissed Google’s challenge to an antitrust ruling, deciding to fine the tech company to the tune of $2.8bn.
European markets today
Stocks: The pan-European Stoxx 600 hovered below the flatline by mid-morning, and travel and leisure stocks dipped slightly by 1% as investors reacted to the Chinese inflation data for October, which saw the CPI rise by 1.5% compared to the previous year.
US equity futures were lower on Wednesday, and Asia-Pacific markets dropped as the markets reacted to the Chinese inflation data.
Oil: Oil and gas stocks gained 0.4% as the markets remained concerned that US President Joe Biden would go ahead with his plan to tap the country’s Strategic Petroleum Reserve (SPR) to cool fuel prices.
Gold: US gold futures eased at 0.2% to $1,827.40. Gold was up 0.6% in early morning trading and silver inched lower by -0.4%.
Forex: The US dollar rose 0.1% as investors waited for US inflation data.
Crypto: The price of the Cardano ADA token rose by 3% to $2.23 in early morning trade today. Both Bitcoin (BTC) and Ether (ETH) fell after hitting all-time highs yesterday.
Things to watch
- UK multinational information technology consulting company Aveva announced today that it has suffered losses of £80.3m ($108.2m, €93.9m) for the first half of the year. The main driver has been connected to costs associated with Schneider Electrical software and OSIsoft, companies Aveva merged with and acquired in 2018 and 2020, respectively.
- British broadcaster ITV’s shares rose today after it revealed it was on course to achieve record advertising revenues this year.
- Marks and Spencer (M&S), reported a surge in its annual profits today, which beat analysts’ expectations. As a result, the retailers shared more than 15% in early morning trading today.
Top Tweets
Morning Note:
— Jonathan Ferro (@FerroTV) November 10, 2021
-Rivian's $76b valuation
-China PPI at 26-yr high
-US CPI data coming up pic.twitter.com/e1EYBnI3Ri
It's US #CPI day and, ahead of that, very hot #PPI data out of #China.
— Mohamed A. El-Erian (@elerianm) November 10, 2021
Annual PPI #inflation there came in at a notable 13.5% in October (chart from @SCMPNews ), the highest reading since 1995.
This compares to a median forecast of 12.4% and last month's 10.7%.#economy #markets pic.twitter.com/3is6hNlxTy
The Marks and Spencer (MKS) share price is flying! Here’s why https://t.co/CLUZlBYgbc
— The Motley Fool UK (@TheMotleyFoolUK) November 10, 2021
Read more: Business News: Investors wait for US inflation test today
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