FTSE 100 Soars as NatWest Upgraded by Barclays
The FTSE 100 index closed on a high note today, boosted by the news that NatWest has been upgraded to ‘overweight’ by Barclays. The bank’s effective management of deposit migration and funding risks has been praised, with analysts predicting increased net interest margins (NIM) and profits as a result. This positive adjustment has set NatWest apart from its peers and contributed to the broader European equity markets also ending the day with significant gains.
Closing at 7,498.66 points, the FTSE 100 was supported by several key performers. Mining companies Anglo-American and Fresnillo were among the top gainers, with respective increases of 3.65% and 3.20%. Insurer Prudential and banks like Standard Chartered also made strong contributions to the rise, seeing their shares climb by over 3%. Other notable gainers included Glencore, Land Securities Group, DCC, Halma, and Hargreaves Lansdown.
However, not all sectors saw positive results. Retailers Marks & Spencer and B&M experienced a decline in their share prices following an unexpected drop in October retail sales. The Office for National Statistics (ONS) reported a decrease, contradicting earlier predictions of an increase.
In other news, Eurostat confirmed that the Eurozone inflation rate stands at 2.9%, the lowest point in over two years. This suggests easing inflationary pressures within the region. Despite a reduction in goods trade surplus for September, the euro area current account surplus remained steady at EUR 31 billion.
Today’s market movements demonstrate the intertwined nature of corporate developments and macroeconomic data, both of which influence investor sentiment across Europe.
More detail via Investing.com South Africa here… ( Image via Investing.com South Africa )