FTSE 100 Surges as Trump’s Victory Sparks Market Optimism and M&S Shines
The FTSE 100 has seen a remarkable jump of over 1% today, with the stock market reacting positively to expectations of Donald Trump’s potential return to the White House. Traders are positioning themselves for a fresh wave of policies that could include lower corporate taxes and deregulation, which many believe will boost U.S. growth. However, the mood is mixed with concerns about possible trade tariffs, particularly with China. This scenario is pushing the U.S. dollar and Treasury yields up, while cryptocurrencies like Bitcoin are soaring to new highs.
Bitcoin, in particular, has surged by 6%, reaching a new record price of nearly $74,000. Market analysts are projecting that the price could climb even higher to between $80,000 and $90,000 before Trump’s inauguration. This is being driven by his favorable stance toward cryptocurrencies, combined with expectations that his administration will foster a more permissive regulatory environment. This has led to increased interest from major institutions, which could further elevate Bitcoin’s demand and value.
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Meanwhile, in the UK, Marks & Spencer (M&S) is one of the stars of the day. The retailer’s shares have jumped 4% to a nine-year high after it reported a 17% rise in profits for the first half of the year, far surpassing analyst expectations. Both M&S Food and Clothing & Home sales have shown continued growth, with food sales up by 8.1% and clothing and home revenues increasing by 5.7%. The retailer has now seen market share growth for four consecutive years, a testament to the strength of its strategy, which includes key collaborations in fashion and a renewed focus on quality and value.
Additionally, the broader market sentiment has been boosted by a strong performance from other sectors, including the banking and pest control industries. Stocks like Barclays and Rentokil Initial have benefited from expectations of lower corporate tax rates under a Trump presidency. Rentokil, which earns a significant portion of its revenue from the U.S., saw a solid rise in its share price, while Pearson, the educational publisher, and Ashtead, the plant hire firm, also posted gains.
However, not all news is positive. Housebuilder Persimmon has issued a warning about rising build costs, exacerbated by the recent UK Budget. They are seeing some cost inflation impacting price negotiations for 2025, but are working closely with their supply chain to mitigate these challenges. Similarly, JD Wetherspoon, despite posting strong sales, has raised concerns over a potential increase in hospitality prices due to substantial cost inflation following the recent budget.
Overall, while market conditions remain somewhat uncertain due to global economic factors, the anticipation of a Trump presidency and the ongoing momentum at companies like M&S has injected a renewed sense of optimism into the markets. With further updates expected throughout the day, investors will be keeping a close eye on how these developments unfold in the coming weeks.
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