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London open: FTSE nudges up as investors eye Trump inauguration
London stocks nudged higher in early trade on Monday, having a hit record high at the end of last week, as investors mulled the latest house price data from Rightmove and awaited Donald Trump’s inauguration as the 47th US president.
At 0840 GMT, the FTSE 100 was up 0.1% at 8,515.49, having closed 1.4% higher on Friday at a record high of 8,505.22.
Richard Hunter, head of markets at Interactive Investor, said: “US markets registered their first weekly gain this year, ahead of what is likely to be a defining moment when the new President is inaugurated later today.
“Investors will not have the luxury of being able to react immediately, with markets closed for Martin Luther King Day, but the expected slew of executive orders which are likely to be announced within hours sets up an interesting start to trading tomorrow.
“Particular attention will be given to some of the measures promised during the election campaign, such as the potentially inflationary effects of tax cuts and tariffs in a show of American exceptionalism. The so-called ‘Trump trades’, which have ranged across the likes of the financials and smaller cap stocks, could be in sharp focus.”
On home shores, data released earlier by Rightmove showed that the average price of a property coming to market rose by 1.7% in January to £366,189 – the largest increase in prices at the start of the year since 2020.
A record number of early-bird new sellers came to market since Boxing Day, the property portal said.
This meant that buyers had the highest level of choice at the start of a year since 2015, which has also contributed to an encouraging start to 2025 buyer activity.
The number of new properties coming to market was up 11% on the same start-of-the-year period last year.
The number of buyers contacting agents about properties for sale since Boxing Day was 9% higher, and the number of sales being agreed over the same period was up 11%
Nevertheless, new seller asking prices are still nearly £9,000 lower than May 2024’s record, reflecting buyer affordability constraints.
Colleen Babcock, property expert at Rightmove, said: “New sellers have started the year with a bang, with a record number coming to market not only on Boxing Day itself, but across the start of the year to date. We’ve also seen a strong start to the year in new seller asking prices, though given the higher-than-anticipated seller competition, we would expect this to slow down over the next few months. The record number of sellers we’re seeing is a double-edged sword.
“It’s encouraging to see so many sellers with the confidence to come to market, providing buyers with fresh choice. However, with lots of homes for buyers to consider, sellers will need to work even harder to stand out from the crowd and attract a buyer. This could be with a tempting asking price, standout home features, immaculate presentation of the home, or a combination of all of these. It’s vital that in a competitive market, sellers take on the recommendations of their agent, particularly when it comes to setting a realistic price.”
In equity markets, Ladbrokes owner Entain fell following a report that the Financial Reporting Council has begun an investigation into KPMG’s audit of the company for the year ended December 2022.
Wood Group gained after it won a contract to provide long-term maintenance for Esso’s onshore and offshore assets in Australia’s Gippsland Basin.
National Grid was boosted by an upgrade to ‘buy’ from ‘neutral’ at Citi.
Spirax was in the black after an upgrade to ‘buy’ from ‘hold’ at Jefferies, but Smiths fell after a downgrade to ‘hold’ from ‘buy’ by the same outfit.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Smurfit Westrock Plc | +1.70% | +74.00 | 4,415.00 |
| 2 |  |
Banco Santander S.a. | +1.61% | +6.50 | 409.00 |
| 3 |  |
Flutter Entertainment Plc | +1.40% | +300.00 | 21,660.00 |
| 4 |  |
Barclays | +1.02% | +2.95 | 292.30 |
| 5 |  |
Pershing Square Holdings Ltd | +0.99% | +42.00 | 4,270.00 |
| 6 |  |
Experian Plc | +0.96% | +36.00 | 3,773.00 |
| 7 |  |
National Grid Plc | +0.93% | +9.00 | 972.20 |
| 8 |  |
Compass Group Plc | +0.79% | +21.00 | 2,696.00 |
| 9 |  |
Bae Systems Plc | +0.78% | +9.50 | 1,232.00 |
| 10 |  |
Melrose Industries Plc | +0.78% | +4.40 | 572.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Wise Plc | -1.56% | -16.00 | 1,011.00 |
| 2 |  |
Wpp Plc | -0.96% | -7.20 | 739.40 |
| 3 |  |
Scottish Mortgage Investment Trust Plc | -0.96% | -10.00 | 1,036.00 |
| 4 |  |
Rentokil Initial Plc | -0.91% | -3.50 | 382.80 |
| 5 |  |
South32 Limited | -0.89% | -1.60 | 178.60 |
| 6 |  |
Ferguson Enterprises Inc. | -0.75% | -110.00 | 14,600.00 |
| 7 |  |
Barratt Redrow Plc | -0.68% | -2.90 | 423.90 |
| 8 |  |
F&c Investment Trust Plc | -0.68% | -8.00 | 1,170.00 |
| 9 |  |
Associated British Foods Plc | -0.60% | -12.00 | 2,000.00 |
| 10 |  |
Smiths Group Plc | -0.59% | -11.00 | 1,851.00 |
US close: Stocks higher ahead of MLK Day break
Wall Street stocks were in the green at the close of trading on Friday as traders prepped for a three-day break.
At the close, the Dow Jones Industrial Average was up 0.78% at 43,487.83, while the S&P 500 advanced 1.00% to 5,996.66 and the Nasdaq Composite saw out the session 1.51% firmer at 19,630.20.
The Dow closed 334.70 points higher on Friday, more than reversing losses recorded in the previous session as Q4 earnings season began to pick up steam.
Stocks were in the green on Friday as softer-than-expected consumer and producer price indexes continued to boost sentiment and show that inflationary pressures appeared to be easing somewhat, while solid earnings from a number of that nation’s biggest banks also gave major indices a boost towards the end of the week.
Market participants also looked ahead to next week, with trading halted on Monday in observance of Martin Luther King Jr. Day. Donald Trump will also take the oath of office and be inaugurated as president for the second time on Monday.
On the macro front, building permits decreased by 0.7% month-on-month in December to a seasonally adjusted rate of 1.48m, according to the Census Bureau, while housing starts surged 15.8% to 1.49m, the biggest jump since March 2021.
Elsewhere on the data front, US industrial production increased 0.5% month-on-month in December, according to the Federal Reserve, the first gain in six months, following an upwardly revised 0.6% drop in November.
Monday newspaper round-up: TikTok, London salaries, Airbus
TikTok said on Sunday that it was restoring services in the US after Donald Trump pledged earlier in the day to give the video app a reprieve on its US ban. Trump wrote on Truth Social that after taking office on Monday he would sign an executive order allowing the Chinese-owned video app additional time to find a buyer before facing a total shutdown, and proposing that the US or an American firm take a 50% ownership stake. – Guardian
The average London worker could quit their job in August and still be paid what an average worker in Burnley would make in a year, according to a report highlighting Britain’s stark regional pay divide. Calling on the government to close regional pay divisions and increase economic growth, the Centre for Cities said the average annual wage for an employee in London was almost £20,000 higher than in the lowest-paid places in the UK. – Guardian
Ministers must enforce a ban on foreign state ownership of newspapers to force the sale of The Telegraph by an Abu Dhabi fund, the former Conservative leader Sir Iain Duncan Smith has said. He accused the Government of “foot-dragging” over the process out of concern for relations with the United Arab Emirates, which has been overseeing what has been dubbed “the auction from hell”. – Telegraph
Airbus is providing financial assistance to some of its industrial suppliers in an attempt to raise production in 2025 despite continuing disruption to the supply chain since the pandemic. Last year the company missed its delivery targets primarily because of issues at one of its main engine providers, CFM, a joint venture between America’s GE and Safran of France. – The Times
The cost of improving the Office for National Statistics’ labour market survey has almost doubled over the past year amid persistent delays to its publication, underscoring concerns over the validity of UK economic data. A response to a freedom of information request from The Times revealed that the agency has spent £40.4 million on creating the transformed labour force survey, up from an earlier estimate of £24.1 million. – The Times
