FTSE 100: Driven by hope around the US presidential election, the FTSE 100 jumped by 116 points on November 6, 2024. Donald Trump’s growing likelihood of winning a second term in the White House inspired investors, so boosting faith in the state of the world.
Shares in big firms including Ashtead, Intercontinental Hotels Group, and Rolls-Royce jumped as the market responded to the election events. Closely behind IHG and Rolls-Royce with gains of 4.8% and 4.4% respectively, Ashtead noted a rise of 5.7%.
Other shares did likewise: Barclays, Marks & Spencer, JD Wetherspoon. Particularly benefiting from strong food sales was Marks & Spencer; its interim profit increased by 20.4%. Wetherspoon cautioned of possible hotel sector price rises brought on by concurrent inflationary pressure.
Even with these achievements, there was reason for worry in other spheres. For instance, Persimmon’s shares dropped 2.4% following the company’s announcement of cost concerns about new building rules and increased social security contributions included into the most recent UK budget.
The performance of the FTSE 100 fits in with a volatile week as investors focus on the US elections and the upcoming interest rate decisions by the Federal Reserve and the Bank of England. Interest rate cuts are expected in the US and the UK, which could have an impact on borrowing costs and inflation worldwide.
Apart from political changes, market attitude was greatly shaped by business news. Anglo American turns its attention on copper and iron ore, thus it made news by selling some of its steelmaking coal interests for $1.1 billion.
Although the FTSE 100 opened rather well, analysts remain wary. Several analysts are closely observing any possible changes in Trump’s policies, especially with relation to tariffs that might influence inflation. The result of the vote and next government policies might cause more market swings in the next days.
Reflecting both optimism and uncertainty in global markets, the FTSE 100 stays a crucial gauge of investor mood as the election results keep coming in.