The FTSE 100 (^FTSE) was steady, hovering around the flatline, on Monday morning, as investors looked ahead to the release of US economic data that was delayed by the government shutdown.
This week’s calendar is packed with both delayed and scheduled economic data releases, following an end to the longest US government shutdown in history last week.
The lineup includes September’s US jobs report, due to be released on Thursday. According to a research note on Monday, Deutsche Bank (DBK.BE) economists expect a sharp rebound in payrolls, forecasting headline and private payrolls to increase by 75,000, up from the 22,000 jobs added in August.
August’s US construction spending data is due out today, while factory orders data is slated for release on Tuesday, followed by trade balance figures on Wednesday.
The minutes from the Federal Open Market Committee’s (FOMC) October meeting are also set to be released on Wednesday, which investors will be looking at closely for any clues as to central bankers’ thinking when it comes to December’s interest rate decision.
Richard Hunter, head of markets at Interactive Investor, said that “comments from the White House that some of the economic data which had been due during the impasse may not be released at all added to concerns about the next interest rate decision from the Federal Reserve.
“Investors had been pricing in an almost certain cut, particularly given the weakness of the labour market and a levelling of inflation, but the likelihood has now fallen to less than 50% given the possibility that the Fed may decide to wait until full visibility has been restored, which could well spill over to next year,” he said.
In the UK, meanwhile, investors will be keeping an eye on the latest inflation data, with October’s consumer price index (CPI) reading due out on Wednesday.
The European Union’s October inflation print is also scheduled to be released on Wednesday.
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The FTSE 100 (^FTSE) was steady in early trading at 9,705 points.
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The DAX (^GDAXI) in Germany rose 0.2%.
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Over in Paris, the CAC 40 (^FCHI) was little changed in early trading.
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The pan-European STOXX 600 (^STOXX) edged 0.1% higher.
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The pound was muted against the dollar (GBPUSD=X) hovering at $1.3162.
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Nasdaq 100 futures (NQ=F) climbed 0.8%, while those on the S&P 500 (ES=F) rose roughly 0.6%. Contracts on the Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, moved up 0.2%.
LIVE 3 updates
- Budget uncertainty drags down UK house prices
Yahoo Finance UK’s Pedro Goncalves writes:
The UK average new seller asking price dropped by 1.8%, a decrease of £6,589, which brings the national average house price to £364,833 – the steepest November decline in more than a decade amid growing anxiety about potential property tax changes in the upcoming budget.
The fall exceeds the typical November decline of 1.1% observed over the past decade, according to figures from Rightmove (RMV.L). A high number of homes for sale is intensifying competition, while rumours of new taxes aimed at higher value properties have encouraged buyers to wait.
More than a third of listed homes (34%) have had at least one asking-price reduction with the average cut being 7%, the highest level since February 2024.
Read more on the story here.
Japan’s economy contracts in the third quarter
Japan’s economy contracted in the third quarter, as the country’s exports were hit by US president Donald Trump’s tariffs.
Japanese gross domestic product (GDP) shrunk by 0.4% in July to September, compared to the previous quarter and by 1.8% on annualised basis, data released on Monday showed.
Exports fell by 1.2% compared to the second quarter and by 4.5% versus the same period a year ago.
The US and Japan announced a trade deal in July, which saw baseline tariff of 15% placed on imports of Japanese goods.
Japan’s Nikkei 225 (^N225) index closed Monday’s session 0.1% lower, on the back of this latest economic data.
Hey there! Vicky McKeever here — ready to bring you the latest economics and markets news of the day.
In terms of results, we have earnings due out from the following companies on Monday:
Let’s get to it.
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