Global indices saw more upwards drift today – the Dow reached another intraday high – with most volatility locked in: investors are looking ahead to tomorrow evening when the latest Federal Reserve guidance is released. Earlier in the day there was more bellicosity from US President Trump who threatened to “totally destroy” North Korea; Trump was speaking at the UN General Assembly.
His words helped gold up a notch to $1,307 but clearly markets are increasingly allowing Trump room to ‘vent’. “If the righteous many don’t confront the wicked few, then evil will triumph,” Trump added. The pound climbed +0.19% earlier to $1.3519 while the euro was +0.23% up at $1.1979.
The FTSE 100 ended 22 points higher tonight at 7,275.25 – more than 100 points lower on a week ago – with retail stocks very much to the fore: M&S shares surged almost +3.5% to 340p while IAG and Sainsbury's were also up more than +2.5% each. Travel operators TUI and Carnival saw -3.4% and -2.6% dips in their share price.
- UK FTSE 100 7,275 +0.30%
- Dow 22,354.99 +0.11%
- S&P 500 2,505.33 +0.06%
- Nasdaq 6,458.77 +0.06%
- Nikkei 225 20,299.38 +1.96%
- DAX 12,557.25 -0.01%
- CAC 40 5,237.69 +0.15%
- Gold 1,313.50 +0.21%
- Oil WTI 50.05 +0.30%
T-Mobile and Sprint shares surge on merger talk; Ryanair crisis continues
Big telecoms merger speculation in the US: the shares of T-Mobile and Sprint spurted ahead today on more merger talk between the two rivals. Should a deal go through it’s likely Deutsche Telekom would emerge as the majority owner.
A stock-for-stock deal is under the microscope but any deal is likely to be several weeks away yet, according to a report from Bloomberg. There would be substantial antitrust issues needing a thorough rake over too.
There’s increasing speculation that Ryanair isn’t just short of a reliable holiday rota. It’s thought it may have a real shortage of pilots. Earlier today a BBC report claimed it had spoken to several sources who reported that pilots were leaving in “droves”. Already it’s thought close to 150 Ryanair pilots have departed to Norwegian this year.
"Pilots are really annoyed at being blamed for taking holidays," the report said. “They feel they were being used as scapegoats for these cancellations.” Ryanair shares at €16.95 have dipped more than -6% in the last five trading days.
German investor confidence up ahead of weekend election
Earlier today the German ZEW investor confidence index – a barometer of around 300 analysts and economists who study the German economy – climbed to 17.0 for September, way ahead of the 12.3 score anticipated by much of the financial community.
Participants give their own analysis for the coming half year on inflation rates, interest rates, stock markets and exchange rates, plus any concerns on the oil price. Despite the surging euro, the index is on the up for September but still substantially below its long-term moving average of 23.